Inheritance Tax is rising, and more families are being affected

Inheritance Tax continues to move up the agenda. Current forecasts suggest government receipts will reach around £8.7 billion in the 2025 to 2026 tax year.

This is not just affecting the very wealthy. As property values and investment portfolios have grown, more families are finding themselves within scope, often without realising it.

This is prompting a shift in thinking. Families are not only focused on managing wealth today, but also on how it will pass to the next generation, and whether the current structure is fit for purpose.

Why more families are now exposed to Inheritance Tax

A key driver is something known as fiscal drag.

The main tax free allowance, the nil rate band, has remained at £325,000 since 2009. Over that same period, asset values have increased significantly.

The result is simple. Estates that would previously have sat outside of Inheritance Tax are now being drawn into it, often unintentionally.

Planning is not just technical, it is generational

Much of estate planning focuses on the technical steps. Wills, allowances, gifting strategies.

All important. But often incomplete.

One of the most valuable aspects of effective planning is bringing the next generation into the conversation, in a way that feels appropriate and constructive.

This does not need to involve sharing detailed numbers or disclosing everything. Instead, it can focus on:

• How the family thinks about long term financial security
• The principles behind decision making and investing
• Why planning matters, and what it is trying to achieve
• How wealth is intended to support future generations

Over time, this helps build understanding, confidence and a sense of responsibility.

A more structured approach to family planning

Aetas works with families to bring clarity to both the technical and human side of planning.

This often involves helping families structure conversations, explain how plans are set up, and ensure that intentions are understood across generations.

Where appropriate, this can extend to supporting family members with their own financial planning, creating alignment rather than fragmentation over time.

Next steps

It may be worth reviewing whether your current arrangements reflect both your financial position and your longer term intentions, or not.

If helpful, a conversation can be arranged to explore how your existing plans are structured and whether there are opportunities to improve clarity, efficiency and long term outcomes for your family.

Sources and further reading