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Estate Planning Checklist: 10 Steps for 2025

· 22 min

Note: The following scenario is fictional and used for illustration.

James, 42, had built a £580,000 estate—a house in Bristol, £150,000 in pension savings, and two investment accounts. He'd made a will naming his wife Emma as beneficiary and appointed his brother as executor. What he didn't have was a Lasting Power of Attorney. When James suffered a severe stroke that left him unable to communicate, Emma discovered she couldn't access their joint savings or make decisions about his medical treatment. It took 6 months and £3,000 in legal fees to obtain a Court of Protection deputyship—time their family couldn't afford.

James isn't alone. While over half of UK adults now have a will, only 14% have registered a Lasting Power of Attorney, and fewer still have completed comprehensive estate planning. The gap between "having a will" and "having a complete estate plan" leaves families vulnerable to legal delays, unexpected tax bills, and painful decisions made by courts instead of loved ones.

This checklist walks you through the 10 essential steps to create a complete estate plan in 2025—from drafting your will to organizing digital assets to planning for inheritance tax. Whether you're starting from scratch or updating an outdated plan, you'll know exactly what to do, why it matters, and how to do it affordably.

Table of Contents

Step 1: Draft a Legally Valid Will

Your will is the foundation of any estate plan. Without one, UK intestacy rules decide who inherits your estate—and those rules almost never match what you'd want.

Nearly 50% of UK adults still don't have a will, leaving their families vulnerable to delays, legal complications, and unintended inheritances. Sarah, 34, owned a £280,000 flat with her unmarried partner Marcus. When she died without a will, her entire estate went to her parents under intestacy rules—Marcus inherited nothing despite living together for 8 years.

A legally valid will in the UK must meet specific requirements. You must be 18 or older, have testamentary capacity (sound mind), sign the will voluntarily, and have two independent witnesses watch you sign. The will must be in writing and properly executed according to the Wills Act 1837.

Your will must include five essential elements: an executor appointment (who manages your estate), beneficiaries (who inherits), guardians for children under 18, specific bequests (particular items to particular people), and a residuary clause (what to include in your will).

Solicitor vs Online Will Comparison:

Feature Solicitor Will Online Will (WUHLD)
Cost £150-£1,000+ £99.99
Time 2-4 weeks 15 minutes
Convenience Office appointments required Complete at home, anytime
Legal validity Yes (if properly executed) Yes (if properly executed)
Preview before paying No Yes

The cost difference is substantial. A solicitor-drafted simple will typically costs £200-£400, while complex wills can exceed £1,000. With WUHLD, you can create your legally valid will in 15 minutes for £99.99, preview it completely free, and receive four essential documents: your will, a 12-page Testator Guide, a Witness Guide, and a Complete Asset Inventory document.

You can start today by creating your will online. It's the single most important step in protecting your family's future.

Step 2: Register Lasting Powers of Attorney

James's story from the opening illustrates why Lasting Powers of Attorney are essential. When you lose mental capacity—through stroke, dementia, accident, or illness—someone needs legal authority to make decisions for you.

There are two types of LPAs in the UK. A Property and Financial Affairs LPA lets your chosen attorney manage your bank accounts, pay bills, sell property, and handle investments. A Health and Welfare LPA lets them make medical treatment decisions, decide where you live, and consent to care arrangements.

Without LPAs, your family faces Court of Protection deputyship. The application fee alone is £408, with an additional £494 if a court hearing is required. The process takes 6+ months, costs £3,000+ in total legal fees, and gives the court—not your family—control over who makes decisions for you.

Margaret, 68, developed dementia without having registered an LPA. Her daughter Rachel couldn't access her mother's bank accounts to pay for care home fees. Without an LPA, Rachel spent £2,800 on deputyship applications and waited 7 months—time Margaret's savings couldn't afford.

Registering an LPA is straightforward but requires planning ahead. Each LPA costs £82 to register with the Office of the Public Guardian, and processing takes up to 20 weeks. You can complete the application yourself online without a solicitor.

LPA Registration vs Court of Protection Deputyship:

Factor LPA Registration Court Deputyship
Cost £82 per LPA £408-£902 application + legal fees
Time Up to 20 weeks 6+ months
Control You choose attorney Court decides
When to apply While you have capacity After capacity lost
Total cost £164 (both LPAs) £3,000+

Record 1,161,958 LPAs were registered in 2023—a 37% increase from the previous year. This surge reflects growing awareness, but 78% of UK adults still have no LPA, leaving them vulnerable.

Register both types of LPA while you have full capacity. Your future self—and your family—will thank you.

Step 3: Create a Comprehensive Asset Inventory

When you die, your executors need to locate every asset you own to distribute your estate. An incomplete asset inventory is the second-leading cause of probate delays.

David, 55, died unexpectedly. His wife Linda knew about their house and joint bank account but didn't know he had three pension pots from previous employers worth £180,000 combined. It took 18 months and professional tracing services to locate them all.

Your asset inventory must include everything you own. Property (addresses, ownership type, mortgage balances), financial accounts (bank names, account numbers, approximate balances), investments (ISAs, stocks, bonds, platforms), and all pension pots are essential starting points.

Don't overlook life insurance policies (provider, policy numbers, coverage amounts), business interests (company names, ownership percentages, valuations), valuables (jewelry, art, vehicles, collections), digital assets (see Step 6), and debts (mortgages, loans, credit cards).

Your Asset Inventory Must Include:

  • Property details with current values
  • All bank and building society accounts
  • Investment accounts and ISAs
  • Every pension (workplace, personal, SIPPs)
  • Life insurance and critical illness policies
  • Business ownership and partnerships
  • Valuable personal property
  • Digital assets and online accounts
  • Outstanding debts and liabilities

In 2024, 298,295 probate applications were filed, with average processing now taking 4-5 weeks for straightforward estates. Incomplete information extends this timeline significantly.

Update your asset inventory annually or whenever you acquire or dispose of significant assets. Store it with your will but keep it as a separate document—you'll update this more frequently than your will itself.

WUHLD provides a Complete Asset Inventory document with your will—no need to create your own spreadsheet. It's designed specifically to capture everything executors need without missing critical details.

Step 4: Review and Update Beneficiary Designations

Your pension death benefits can be worth more than your house, but they're NOT controlled by your will. Neither are life insurance payouts.

Tom divorced his wife Claire in 2018 but forgot to update his £200,000 pension beneficiary designation. When he died in 2023, his pension went to Claire, not his new partner Jenny—despite his will leaving everything to Jenny.

Beneficiary designations override your will entirely. When you nominate someone on a pension application form or life insurance policy, that nomination controls who receives those assets on your death, regardless of what your will says.

This creates a dangerous gap in many estate plans. You might carefully draft a will leaving everything to your children, but if your pension beneficiary form still names an ex-spouse from 15 years ago, they receive the pension—not your children.

Action Checklist for Beneficiary Designations:

  • Contact every pension provider (workplace, personal, SIPPs)
  • Contact all life insurance providers
  • Request current beneficiary designation forms
  • Update forms to reflect current wishes
  • Ensure beneficiaries match will provisions (unless intentionally different)
  • Keep copies with your will and asset inventory
  • Review and update after any major life event

Common life events requiring beneficiary updates include marriage or civil partnership, divorce or dissolution, birth or adoption of children, death of a named beneficiary, and remarriage or new long-term partnership.

Check these designations now. Review them every time you update your will. A 15-minute review could prevent Tom's situation from happening to your family.

Step 5: Plan for Inheritance Tax

Inheritance tax (IHT) can claim 40% of your estate above certain thresholds. The good news? With planning, many families can reduce or eliminate it entirely.

The IHT nil-rate band is £325,000, frozen at this level since 2009 and remaining frozen until 2030. If your primary residence passes to children or grandchildren, you get an additional residence nil-rate band of £175,000.

Married couples and civil partners can transfer unused allowances, creating up to £1 million combined threshold (£325,000 + £325,000 + £175,000 + £175,000). Transfers between spouses are generally IHT-exempt.

Helen and Robert's £800,000 estate (£500,000 house + £300,000 savings) qualified for the full £500,000 combined threshold because they left their home to their children. Their estate paid zero inheritance tax. If they'd left the house to a sibling instead, they'd owe £120,000 in tax.

Simple IHT Planning Strategies Anyone Can Use:

  • Use annual gift exemption: £3,000 per year can be gifted tax-free
  • Make small gifts from income: Unlimited if from surplus income (not capital)
  • Consider life insurance in trust: Policy payout covers IHT bill without increasing estate value
  • Leave 10% to charity: Reduces IHT rate from 40% to 36% on remaining estate
  • Make potentially exempt transfers: Gifts become tax-free after 7 years

For estates approaching or exceeding £2 million, seek specialist advice. The residence nil-rate band tapers down by £1 for every £2 over £2 million, disappearing entirely at £2.35 million.

Example IHT Calculation:

Estate value: £600,000 Nil-rate band: £325,000 Residence nil-rate band: £175,000 Total threshold: £500,000 Taxable amount: £100,000 IHT at 40%: £40,000

The same estate without residence nil-rate band (home not passing to children): Total threshold: £325,000 Taxable amount: £275,000 IHT at 40%: £110,000

The difference? £70,000 in tax based solely on who inherits the home.

IHT planning for complex estates requires specialist advice, but these basic strategies work for most families. Start by understanding your current position, then explore legitimate ways to reduce your liability.

Step 6: Organize Your Digital Estate

The average person has 90+ online accounts. After death, most families can't access any of them.

When Emma died at 39, her husband couldn't access her Facebook account to notify friends, retrieve 15 years of family photos, or cancel her £800/year software subscriptions. It took 8 months and legal threats to recover essential documents stored in her Google Drive.

Your digital estate includes everything online: financial accounts (online banking, PayPal, investment platforms), email accounts, social media (Facebook, Instagram, LinkedIn, X/Twitter), and cloud storage (Google Drive, iCloud, Dropbox).

Don't forget cryptocurrencies (wallet information, exchange accounts), subscription services (Netflix, Spotify, software licenses), photo storage (Apple Photos, Google Photos, Flickr), and domain names and websites you own.

Digital Asset Organization Checklist:

  • List all online accounts with usernames (not passwords—wills become public)
  • Note which accounts contain valuable assets or memories
  • Set up password manager with emergency access feature
  • Document cryptocurrency holdings separately (private keys, exchange accounts)
  • List monthly/annual subscriptions for cancellation
  • Identify cloud storage locations with important documents
  • Note social media accounts with instructions (memorialize, close, or maintain)

Security matters. Never write passwords directly in your will—wills become public documents during probate. Instead, use a password manager with emergency access features like 1Password or Bitwarden. Your executor can request access after a waiting period you set (typically 14-30 days).

The Computer Misuse Act 1990 makes it technically illegal to access someone's accounts without permission, even after death. Platform terms of service vary—some allow access with death certificate and legal documentation, others don't.

Document your digital estate in your asset inventory. Include account names, associated email addresses, and approximate value (especially for financial accounts and cryptocurrencies). Your executor needs this information to manage your estate properly.

Step 7: Document Your Funeral Wishes

Average UK funeral costs reach £3,980 for cremation and £5,198 for burial, but cost isn't the only concern. Your family faces dozens of decisions during the most stressful time imaginable.

Mark died suddenly. His three siblings couldn't agree on burial vs cremation. The dispute delayed the funeral by 6 weeks and created a family rift that lasted years. Mark had strong preferences but never documented them.

Your funeral wishes are guidance, not legally binding, but families almost always follow documented preferences. Documenting them isn't morbid—it's a gift that removes uncertainty during grief.

Funeral Wishes Checklist:

  • Burial or cremation preference
  • Religious, spiritual, or secular service
  • Specific music, readings, or speakers
  • Location preference for service
  • Guest list approach (public, private, family-only)
  • Charitable donations in lieu of flowers
  • Organ donation wishes
  • Budget guidance for family

Store funeral wishes separately from your will. Wills may not be read until weeks after death—too late for funeral planning. Keep a copy with your asset inventory, give one to your executor, and tell family members where to find it.

If cost concerns you, consider a prepaid funeral plan. These lock in today's prices and relieve your family of financial burden. Plans typically cost £3,000-£5,000 paid upfront or in installments.

WUHLD's Testator Guide includes space for funeral preferences alongside your will. Your executor receives both documents together, ensuring your wishes are known when they're needed most.

Step 8: Choose and Inform Your Executors

Your executor manages probate, values your estate, pays debts and taxes, and distributes assets to beneficiaries. It's a significant responsibility requiring trustworthiness, organization, and financial competence.

Susan named her daughter Kate as executor but never told her. When Susan died, Kate discovered she'd also been named guardian for Susan's disabled brother—a massive responsibility Kate wasn't prepared for and didn't want. The family had to apply to remove Kate as executor, delaying probate by 4 months.

Choose your executor carefully. They should be trustworthy and honest, organized and detail-oriented, financially responsible, living in the UK (or willing to appoint a UK-based representative), and younger than you are (or appoint a successor executor).

Most importantly, they must be willing to serve. Ask them first. Executors can decline appointment even after your death, causing delays while the court appoints a replacement.

Executor Selection Checklist:

  • Trustworthy with strong integrity
  • Organized and capable of managing complex paperwork
  • Financially literate (understands assets, taxes, debts)
  • Gets along with beneficiaries (reduces conflict)
  • Lives in UK or willing to appoint UK representative
  • Younger than you or healthy enough to outlive you
  • Has confirmed willingness to serve
  • Has copy of will location and asset inventory

Should you appoint one executor or two? Two executors provide backup if one becomes unable to serve and reduce risk of conflicts or mistakes. They must work together and agree on decisions, which can slow things down but provides important checks and balances.

Professional executors (solicitors or banks) bring expertise and impartiality but charge fees typically 2-5% of estate value. For a £500,000 estate, that's £10,000-£25,000. Family executors serve free (though they can claim reasonable expenses).

Use professional executors when you anticipate family disputes, have complex business assets, have no suitable family members willing to serve, or have an estate requiring specialist tax or legal expertise.

Once you've chosen executors, give them copies of your will location, asset inventory, and contact information for your solicitor (if applicable). The more prepared they are, the smoother probate will be.

Step 9: Store Documents Securely

Peter died unexpectedly. His family spent 5 months searching for his will. They eventually found it in a locked drawer at his office—which his employer had cleared out and nearly destroyed before the family discovered it.

Where you store your will matters enormously. Executors need the original will for probate—copies aren't sufficient. If the original can't be found, courts presume it was destroyed intentionally, and your estate passes under intestacy rules.

Document Storage Options:

At home in fireproof safe Pros: Immediate access for family Cons: Risk of damage, loss, or theft

With solicitor Pros: Secure professional storage Cons: Access delays, retrieval fees

Bank safe deposit box Pros: Highly secure Cons: Access restricted, bank must be notified of death first

National Will Register Pros: Searchable database Cons: Stores location only, not actual document

The National Will Register is a searchable database where you record where your will is stored (not the will itself). For a one-time fee of around £40, anyone can search the register after your death to locate your will.

Store these documents together: original will, LPA registration confirmations, asset inventory, funeral wishes, and life insurance policy details. Keep copies in multiple locations—one at home, one with executor, and digital copies in secure cloud storage.

Tell at least two people where your will is stored. Your executor obviously needs to know, but choose a backup (trusted family member or close friend) in case your executor can't be reached immediately.

Probate fees are £300 for estates over £5,000, regardless of estate size. Additional sealed copies cost £1.50 each. Your executor will need these to access financial accounts and transfer property.

WUHLD's Testator Guide includes specific guidance on storage options and reminds you to inform your executor. Proper storage isn't complicated, but it's essential.

Step 10: Schedule Regular Reviews

Rachel's will left everything to her husband Mike and appointed her sister Jane as guardian for their daughter. After divorcing Mike and having a second child with her new partner Alex, Rachel never updated her will. When she died, Mike inherited everything, Jane became guardian for both children (including Alex's biological son), and Alex was left with nothing.

66% of UK adults with wills have not updated them in the last 5 years. Life changes, but wills don't automatically update with it.

Review your complete estate plan every 3-5 years minimum. Review immediately after major life events: marriage or civil partnership, divorce or dissolution, birth or adoption of children, death of beneficiary or executor, and significant wealth changes.

Other triggers include purchasing property, moving house, children turning 18, starting or selling a business, retirement, and receiving substantial inheritance or gifts.

Estate Plan Review Triggers:

  • Marriage, divorce, or new partnership
  • Birth or adoption of children
  • Death of beneficiary, executor, or guardian
  • Significant wealth increase or decrease
  • Property purchase or sale
  • Children reaching age 18
  • Retirement or career change
  • Moving house or emigrating
  • Changes to inheritance tax thresholds (like 2025-2030 freeze)

What to review during each check: your will for outdated beneficiaries or executors, both LPAs for outdated attorneys, beneficiary designations on pensions and insurance, asset inventory for new or disposed assets, and funeral wishes if preferences have changed.

Never handwrite changes on your will—this creates legal uncertainty about validity. Instead, execute a formal codicil (amendment document) or create a new will entirely. Most solicitors and online services recommend a new will rather than codicils for anything beyond minor changes.

2025 is an important review year. With inheritance tax thresholds frozen until 2030 and pension death benefit rules changing in 2027, reviewing your estate plan now ensures you're positioned optimally for coming changes.

Set an annual calendar reminder each January to review your asset inventory. Set a three-year reminder to review your complete estate plan. If you haven't reviewed your plan in 3+ years, start by creating a new will with current information.

Frequently Asked Questions

Q: What is estate planning and why do I need it?

A: Estate planning is the process of organizing how your assets, property, and responsibilities will be managed when you die or lose mental capacity. You need it to protect your family from intestacy rules, minimize inheritance tax, ensure your children are cared for by your chosen guardians, and avoid lengthy probate delays that could leave loved ones financially strained.

Q: What are the essential documents I need for estate planning in the UK?

A: The four essential estate planning documents in the UK are: a legally valid will specifying asset distribution and guardianship, a Property and Financial Affairs Lasting Power of Attorney for financial decisions, a Health and Welfare Lasting Power of Attorney for medical decisions, and a comprehensive asset inventory listing all your property, accounts, investments, and digital assets.

Q: How much does estate planning cost in the UK?

A: Estate planning costs vary significantly. A solicitor-drafted will costs £650+, while online services like WUHLD charge £99.99. Lasting Power of Attorney registration costs £82 per document through the Office of the Public Guardian. Probate fees are £300 for estates over £5,000. Creating a will online and registering LPAs yourself can cost under £300 total.

Q: When should I start estate planning?

A: You should start estate planning as soon as you have assets to protect, dependents who rely on you, or property you want to pass to specific people. Key trigger moments include buying property, getting married, having children, starting a business, or reaching age 18 (the legal minimum for making a will in the UK).

Q: How often should I update my estate plan?

A: Review your estate plan every 3-5 years or immediately after major life events such as marriage, divorce, birth of children, significant asset acquisition, death of a beneficiary or executor, or moving house. The 2025 inheritance tax changes make now an especially important time to review your plan.

Q: What happens if I die without a will in the UK?

A: If you die without a will (intestacy), your estate is distributed according to strict legal rules that may not match your wishes. Your unmarried partner inherits nothing regardless of your relationship length. Your estate could go entirely to parents or siblings instead of children. The process takes longer and costs more, and your family has no say in who becomes executor.

Q: Can I do estate planning myself or do I need a solicitor?

A: You can do basic estate planning yourself using reputable online services like WUHLD for straightforward situations. However, you may need a solicitor if you own property abroad, have complex business interests, anticipate family disputes, have assets over £2 million where inheritance tax planning is critical, or need disability trusts for vulnerable beneficiaries.

Conclusion

Estate planning isn't a single task—it's a comprehensive system that protects your family when you can't. Here's what to do next:

  • Start with your will – The foundation of any estate plan, protecting your family from intestacy rules
  • Register Lasting Powers of Attorney – Essential protection if you lose mental capacity (costs just £82 vs £3,000+ for deputyship)
  • Document every asset – Create a complete inventory so nothing goes missing during probate
  • Review beneficiary designations – Ensure pension and life insurance benefits go where you intend (they override your will)
  • Plan for inheritance tax – Simple strategies can save your family thousands, especially with the frozen £325,000 threshold

James lost 6 months and £3,000 because he'd completed step one but not step two. Rachel's children went to the wrong guardian because she never updated her will. David's widow spent 18 months finding hidden pensions. These aren't worst-case scenarios—they're common consequences of incomplete estate planning.

The good news? You can complete the most critical step—creating your legally binding will—in just 15 minutes today.

With WUHLD, you'll get:

  • Your complete, legally binding will
  • A 12-page Testator Guide (including asset inventory templates)
  • A Witness Guide
  • A Complete Asset Inventory document

All for £99.99 (vs £650+ for a solicitor). You can preview your entire will free before paying anything.

Create Your Will Now – Preview Free, No Payment Required

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.

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