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Inheritance Tax (IHT) has a reputation for being a problem "for later", something to worry about once you’re wealthy, retired, or more aware of your own mortality. But as Shorts tax specialists Craig Walker and Mark Trevena discussed on the recent Accountable by Shorts podcast, this assumption is one of the biggest obstacles to effective estate planning. In reality, most people wait far too long to think about Inheritance Tax, and many others underestimate the benefits of starting early.
So, is there such a thing as being too young or too old for IHT planning? In short: no. But the way you approach it, and the opportunities available to you, will change depending on when you start.
Why younger people shouldn’t ignore IHT planning
For anyone in their twenties, thirties or forties, Inheritance Tax can feel remote, something you only need to worry about when you’re older or have amassed significant wealth.
But the earlier individuals begin to consider their estate, the more options they have available to them. Planning “too early” is rarely a problem; planning too late almost always is.
According to Craig, early IHT planning gives you:
1. More time to use the seven‑year gifting rule
Gifts made earlier in life have a much better chance of falling completely outside your estate.
2. Flexibility to build long-term strategies
Younger individuals can structure savings, investments and property ownership in tax‑efficient ways that compound over time.
3. Time to understand changing rules
With pension wealth being brought into the scope of IHT from April 2027, younger savers need to understand how their retirement pots might eventually increase their taxable estates.
And importantly, many younger people underestimate their asset base. With property values rising and the nil‑rate band frozen since 2009, more people than ever risk drifting into IHT territory long before they expect it.
Starting early simply means understanding your estate and building good habits.
Why you’re never too old to start IHT planning
On the other end of the spectrum, older individuals often assume they’ve "missed the boat" on meaningful IHT planning. But as Mark stresses, this is rarely the case. Even if certain strategies are no longer available, there is almost always something that can be done.
For older clients, the priority often shifts to:
Minimising avoidable tax exposure
This might include using annual exemptions, reviewing the structure of assets, or ensuring previous gifts have been properly recorded.
Ensure your will is professionally drafted
DIY wills are common among older adults and frequently cause ambiguity, disputes and unexpected tax liabilities. A properly drafted will reduces stress and protects your beneficiaries.
Understanding what tax your estate will face
Even if you can’t remove the IHT liability, quantifying it allows you to plan how it will be paid. Some families choose strategies such as ensuring sufficient cash is available or using life insurance to cover the expected tax.
Older adults often feel anxious about inheritance tax, but clarity can be just as valuable as tax reduction. As Mark explains, 'Even if nothing can be changed, it’s better to know what you’re dealing with.'
Beware the risks of doing nothing
Across all ages, the biggest issue is not starting too early or too late: it’s not starting at all. People frequently avoid IHT planning because they find the topic morbid, confusing or simply unimportant until "one day in the future". Burying your head in the sand only makes it harder for your family later.
And leaving things until the last minute limits your choices and ignites further stress. Gifting strategies become impractical. Trust structures may no longer be suitable. Simple actions that once carried no tax consequences may suddenly become risky.
Inheritance Tax is easiest to reduce when you have time. It’s hardest when time is the one thing you no longer have.
So, when should you start IHT planning?
Whether you ask an accountant or a financial adviser, the answer will always be the same: start now, whatever your age.
- If you’re young, you can build slowly and strategically.
- If you’re older, you can protect your family from unnecessary complications.
- If you have no idea where to start, the first step is simply understanding your estate and your goals.
There is no perfect age — only the risk of leaving it too late. If you want to start planning your estate, Shorts' Personal Tax Planning team can help. our tax advisers take the time to listen to your needs and priorities, and create a personalised plan. If you want more information, our podcast episode on Inheritance Tax covers common IHT misconceptions and practical advice to help individuals feel more empowered with their estate planning.
Mark Trevenna
As a Private Client Senior Manager at Shorts and Chartered Tax Adviser (CTA), Mark regularly advises individuals and trustees on tax compliance and improving the tax efficiencies of the trusts and their estates. Mark has over 17 years of experience advising clients on Inheritance Tax and Capital Gains Tax.
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