How to avoid painful planning mistakes

Webinar

In this short webinar, you will learn:

How you can leave more money to your loved ones by mitigating Inheritance Tax
A simple clause you can add to your will, which can save some estates £70,000
How you can protect the money you leave your children from the risk they get divorced
How to ensure your planning is safe and accepted by HMRC
2026 UPDATE: Please note the relief for farmers and small business owners is now £2.5m and IS transferable between spouses.

Summary

Discussed Inheritance Tax (IHT) fundamentals, including the 40% rate for estates over £1 million (for married couples) and the 60% effective tax trap for estates valued between £2 million and £2.7 million due to the tapering of the Residence Nil Rate Band.
Explored key threats to family wealth beyond taxation, such as divorce (the ‘son-in-law from hell’ scenario), disinheritance upon a partner’s remarriage, and the risks associated with vulnerable or irresponsible beneficiaries.
Outlined how trusts can be used to protect assets from generational IHT, divorce, and remarriage, ensuring wealth remains within the bloodline for future generations while allowing for controlled distribution.
Advised on a specific will clause for married couples with estates over £2 million to fully utilise the Residence Nil Rate Band on the first death, potentially securing an immediate tax saving of £70,000.
Explained the strategic use of a Deed of Variation for individuals who have received an inheritance within the last two years, allowing them to redirect the funds into a trust for immediate IHT benefits without a seven-year wait.
Highlighted the critical need for business owners and farmers to review their wills following recent budget changes, as IHT reliefs like Business Relief may not automatically transfer between spouses, risking significant tax liabilities.
Identified common pitfalls in estate planning, such as having no plan, inadequate DIY planning, and fragmented financial affairs, stressing the importance of a joined-up legal and financial strategy to avoid future complexity and costs for beneficiaries.

Webinar Introduction & Objectives

The webinar focuses on protecting family wealth from Inheritance Tax (IHT) and other significant threats.
Attendees will learn how to mitigate IHT to leave more wealth to their loved ones.
A key topic is a simple will clause that can potentially save an estate £70,000 or more.
The session will cover strategies to protect children’s inheritances from potential future divorces.
Guidance will be provided on ensuring that estate plans are robust and not challenged by HMRC.
The overall goal is to present a solution that can save a family hundreds of thousands of pounds in tax without complex or risky actions like signing over property.

About the Presenter & The Origin of Deep Dive Estate Planning

The presenter is Peter Ditchburn, a Chartered Financial Planner and the Managing Partner of Deep Dive Estate Planning.
Peter’s career mission is to help families create and leave a lasting, loving legacy for future generations.
He began his career in 2009, a time of significant regulatory change that banned commission and raised qualification standards for advisers.
A crucial realisation for Peter was that the most effective estate planning tools are often legal instruments, such as deeds and trusts, rather than purely financial products.
Previously, while working within a different financial advice network, he was frustrated by their inability to implement these bespoke legal solutions.
The catalyst for creating Deep Dive was a 2019 case where he identified a £100,000 tax-saving strategy for a client which highlighted the efficiency of combining financial and legal estate planning.
Deep Dive Estate Planning was subsequently founded to provide an integrated service, combining financial knowledge with the implementation of powerful legal structures.
Peter’s credentials include numerous industry awards, media features in publications like the Financial Times, and experience presenting to other financial advisers at conferences.

Common & Risky Approaches to Estate Planning

The most common approach is having no plan at all, which often stems from a desire to avoid the short-term discomfort of planning, leading to greater long-term issues.
A ‘Do-It-Yourself’ (DIY) approach is another common strategy. While it can save on fees if executed perfectly, any errors or missed tricks will likely only be discovered after death, when the cost to rectify them could be enormous.
Relying on advice from a ‘know-it-all’ friend or family member is essentially DIY by proxy and is extremely risky, as this advice is unqualified and often incorrect, such as suggesting transferring a home into a trust while still living in it.

The Five Main Threats to Family Wealth

Inheritance Tax (IHT): For a married couple, wealth over £1 million is typically taxed at 40%. A 60% effective tax rate can apply to estates between £2 million and £2.7 million due to the tapering away of the Residence Nil Rate Band.
Generational IHT: Wealth can be subject to IHT repeatedly as it passes down through generations. Trusts are a key tool to mitigate this.
Divorce: An inherited sum can become a marital asset and be split in a divorce settlement, meaning a significant portion of the family wealth could leave the bloodline.
Remarriage: In England and Wales, remarriage automatically revokes any existing will. This could lead to a new spouse inheriting, who may then pass the wealth to their own children, unintentionally disinheriting the original family line.
Vulnerable or Irresponsible Beneficiaries: A beneficiary may inherit a large sum at an inappropriate time in their life. Trusts can provide a protective framework where chosen trustees manage the funds for their benefit.

Key Factors for Successful Estate Planning

Initiating and completing the planning process is critical to avoid the default rules of intestacy and ensure your wishes are met.
A robust and well-documented planning process is vital to avoid future family disputes and challenges to the will on the grounds of capacity or duress. Using recorded meetings can provide strong evidence.
Incorporating trusts into a will provides long-term (up to 125 years) protection and control, allowing you to dictate how and when beneficiaries receive assets, long after your death.
A successful plan must integrate a growth strategy with the protection strategy, ensuring that assets held within a trust are managed in a tax-efficient manner to maximise long-term growth for the family.

Ideal Candidate Profile for Deep Dive’s Services

Services are designed for UK residents, typically aged 60 or over.
Clients generally have estates valued at over £1 million for a married couple, making them concerned about their potential IHT liability.
Individuals with estates over £2 million are particularly well-suited due to the complexities of the 60% IHT trap.
The service is also suitable for those who already have a financial adviser, as it provides a specialist service that complements general financial planning. Many referrals are received from other advisers.

Who May Not Be a Good Fit for These Services

Individuals who are not based in the UK or subject to UK Inheritance Tax.
Anyone seeking aggressive tax avoidance schemes. Deep Dive does not engage in planning that might be challenged by HMRC.
Those who are not prepared to engage with the process and make decisions for the long-term financial benefit of their family.

Specialist Planning ‘No-Brainer’ Scenarios

The £70,000 Will Clause: For married couples with joint estates under £4 million, a specific will clause can secure the Residence Nil Rate Band on the first death, resulting in a £70,000 tax saving. This is often missed even by solicitors.
Deed of Variation: Individuals who have received an inheritance within the last two years can use a Deed of Variation to redirect it into a discretionary trust. This provides an immediate IHT saving and allows the inheritor to remain a potential beneficiary.
Business and Farm Owners: Following the 2024 budget, IHT relief for business and farm assets is limited to £1 million per person and does not transfer between spouses. A will review is critical to prevent the loss of up to £200,000 of relief.

The Deep Dive Process and Offer

Deep Dive offers specialist, top-tier estate planning at a sensible, fixed price, removing the uncertainty of hourly billing.
The firm’s specialisation allows for the highest standard of work to be delivered in a highly efficient manner.
Webinar attendees are offered a free, no-obligation briefing call with a member of the Deep Dive team to discuss their situation.
The purpose of the call is to establish that there is a good fit between the client’s needs and the firm’s services.
During the call, the fixed fees will be explained, and the client can decide whether to book a paid discovery meeting.

Action Points & Next Steps

Attendees considering their estate plan are encouraged to book a free briefing call with the Deep Dive team.
A link is provided on the webinar platform to a booking system showing live availability for call slots.
The call will allow attendees to ask questions and understand how Deep Dive can assist their specific situation.
If the attendee decides to proceed after the call, they can book and pay for their full discovery meeting.