Brits urged to act as rising house prices, tax pressures and dementia risk create estate planning ‘perfect storm’

A leading estate planning adviser is warning that a “perfect storm” of rising property values, frozen inheritance tax thresholds and increasing dementia rates means more families risk being caught out without proper plans in place.

With the average UK home now forming the largest part of most estates, and inheritance tax thresholds remaining frozen, more households are being drawn into potential tax liability. 

At the same time, the number of people living with dementia is projected to reach 1.4 million by 2040, adding further urgency to decisions around powers of attorney and long-term care.

Estate planning expert Steve Bish, from S Bish Estate Planning, said many people still underestimate how essential estate planning has become.

He said: “Estate planning is no longer something that only applies to the very wealthy. For many families, their home alone is enough to create both financial and legal complexity if nothing is put in place.”

“People often think it begins and ends with writing a Will, but it also includes planning for loss of capacity, managing tax exposure and making sure decisions are handled by the right people at the right time.”

Mr Bish said the combination of financial pressure and health risk is making estate planning more relevant than ever.

He said: “We are seeing more families caught between rising asset values and static tax thresholds, while also needing to plan for longer life expectancy and potential care needs.”

“The risk is not just financial. Without clear instructions, families can face delays, disputes and difficult decisions that could have been avoided.”

“Estate planning is ultimately about control and clarity. The earlier you put plans in place, the more certainty you give yourself and your family.”

Five common estate planning myths debunked

1. Estate planning is only for the wealthy

Estate planning is not just about large fortunes. Even modest estates, particularly those including property, can benefit from clear instructions, tax planning and legal structure. It also covers non-financial decisions such as guardianship and healthcare preferences.

2. A Will covers everything

A Will only takes effect after death and does not address what happens if you lose capacity during your lifetime. Estate planning includes tools such as lasting powers of attorney and lifetime planning measures that a Will alone cannot provide.

3. My spouse will automatically inherit everything

While spouses and civil partners are prioritised under intestacy rules, they do not always inherit the full estate.

Where children are involved and the estate exceeds £322,000, assets may be split, creating complexity and potential disputes at an already difficult time.

4. I am too young to worry about it

Unexpected events can happen at any stage of life. Basic planning, including a Will and lasting power of attorney, ensures decisions are not left to courts or third parties.

Bish added: “I have seen first-hand the consequences of having no plan in place. It places a significant burden on families at the worst possible moment.”

5. It is something you only do once

Estate planning should be reviewed regularly. Major life events such as marriage, divorce, children, property purchases or changes in legislation can all affect how an estate should be structured.

With people living longer and family situations becoming more complex, keeping plans up to date is essential.

For further advice or to book a free consultation, call us on 01727 634839

contact@sbishestateplanning.com