Many people believe they don’t need to create an estate plan, or they put the task off because it can be challenging. However, as a homeowner, it may be a vital step to take.
An estate plan sets out how you’d like your assets, including your home, to be managed later in life and after you pass away. Here are three reasons you might want to make it a priority.
1. Ensure you pass your home to your intended beneficiaries
Who do you want to inherit your home when you die? If you don’t have a will in place, your property, along with other assets, may not go to your intended beneficiaries.
If you die without a will, this is known as dying intestate. In these circumstances, your assets will be distributed according to an order that might not align with your wishes. Yet, according to Will Aid (15 August 2025), 66% of UK adults have no will or an out-of-date one.
Writing a will is one way to set out who you’d like to benefit from your estate, which might include family, friends, and charities. This can ensure your home goes to your intended beneficiary.
Once you’ve written a will, don’t simply forget about it. It’s often a good idea to review your will every five years and after major life events, such as getting married or the arrival of a new grandchild, which may change your wishes.
2. Identify whether your estate could be liable for Inheritance Tax
While only around 1 in 20 estates in the UK are liable for Inheritance Tax (IHT), the thresholds are frozen, and the number is expected to rise.
In 2026/27, the nil-rate band is £325,000. If the total value of your estate is below this threshold, no IHT will be due. That figure may seem large, but it can be easier than you think to exceed it. Indeed, the value of your property alone could take up a significant portion of that allowance.
According to the Halifax House Price Index (6 March 2026), in February 2026, the average home in the UK was worth more than £300,000. As house prices have historically risen, the value of your estate could be higher than the nil-rate band without you realising.
The good news is that there are often steps you can take to reduce a potential IHT bill. For example, if you leave your main home to children or grandchildren, you could make use of the residence nil-rate band, which is £175,000 in 2026/27. This may effectively increase how much you can leave behind for loved ones before IHT is due.
3. Understand if you could use property wealth later in life
Finally, your estate plan isn’t only about how to pass on assets after you pass away, but it could also consider your long-term security.
For example, you might assess whether you are at risk of running out of money later in life, or how you’d pay for care costs if you need support. While it can be difficult to think about these challenges, having a plan in place could offer you peace of mind.
In some estate plans, your property might be a valuable asset for your future security. For example, you might consider how you could unlock property wealth to fund expenses later in life. As your home is often one of your largest assets, assessing the impact of downsizing or using equity release could help you consider all of your options.
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We could help you understand your estate and, where appropriate, refer you to a specialist adviser.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate estate planning, will writing, or tax planning.
Equity Release will reduce the value of your estate and can affect your eligibility for means-tested benefits.
Will writing is not part of the Quilter Financial Planning offering and is offered in our own right. Quilter Financial Planning accepts no responsibility for this aspect of our business.
Inheritance Tax planning is not regulated by the Financial Conduct Authority.
Approver Quilter Financial Services Limited. 14/04/2026
