Wealth Planning -

Wealth Transfer Strategy

Regardless of the assets you plan to pass on, such as cash, property, or other valuables, you will need professional financial and legal support to help you establish the best strategy for your lifestyle and goals.


23rd December 2022


Do you have a wealth transfer strategy?

A wealth transfer strategy is a significant part of your estate planning and a vital way to protect and prolong your family’s wealth. Here is what you need to know about the process.

Structuring your wealth to plan for the future can be a daunting and complex task. No one wants to confront worst-case scenarios, but for your peace of mind and that of your loved ones, it is important.

Regardless of the assets you plan to pass on, such as cash, property, or other valuables, you will need professional financial and legal support to help you establish the best strategy for your lifestyle and goals.


What is a wealth transfer strategy?

A wealth transfer strategy is an official blueprint that details how and when your assets will be transferred to your beneficiaries, throughout your life and when you die.

Leaving your legacy to family, philanthropic causes, and other recipients can be a complex affair, but an effective strategy can reduce unnecessary stress and provide financial security after you are gone, so the people you love can focus on what matters most.


A robust wealth transfer strategy benefits you in several ways

It can help address the following considerations:

  1. Control – it enables you to decide who can manage your finances in the event of illness, or death
  2. Access – do you need/want access to your wealth, or do you have sufficient surplus?
  3. Income - how much income do you require to enjoy your life, and where will this come from?
  4. Wealth preservation
  5. Reducing estate and tax costs
  6. Protecting your business interests
  7. Helping avoid conflict within a family.

The main aim of any transfer planning is to explore your options and understand the impact and implications of your goals. Being clear about your chosen beneficiaries and the timeframe for transferring assets enables you to address any questions your loved ones may have and build a foundation of financial understanding that will better prepare them for the future.

How will you distribute your wealth?

There are several ways to avoid stressful scenarios during the transfer, like assets being frozen or subject to fees, but the ideal strategy depends on your goals now and in the future. The best way to plan is alongside a supportive and knowledgeable wealth planner who can take your needs, goals, and aspirations into account today, and going forward.


  • Gifting: Many people want to see their loved ones enjoy their inheritance and gifting can form a great part of your overall wealth planning strategy. By having the right plan in place and using the allowances and tax reliefs available, you can see your loved ones benefit from your gifts.

  • Legally execute a will: A will is the most widespread method of transferring your wealth, and details who will receive your assets and has an executor who carries out your wishes. This process only takes effect when you die and may be subject to going through probate, which can become costly and time-consuming, especially when significant wealth and assets are concerned.

  • Lasting power of attorney (LPA): A LPA ensures decisions about your financial affairs are handled by those you trust.

  • Name your beneficiaries: This involves naming your beneficiaries and keeping all documentation up to date on all insurance contracts and other assets. Part of your estate planning and transfer strategy process should be to review all the beneficiaries listed on your accounts and contracts at every financial institution you use. 

  • Create a trust: Trusts can be used in different ways and can be an effective way to pass  assets to the next generation. Putting assets into trust gives you control over who manages these assets and enables them to distribute assets according to the conditions you set. Certain irrevocable trusts offer an excellent way to reduce the amount of taxes loved ones pay when receiving an inheritance.

  • Trusted advisers: Ensure your legal and financial planning teams are aligned to mitigate any unnecessary confusion in the execution of your wishes.

Tax efficiency as part of your plan

A tax-efficient plan ensures your beneficiaries and charities will receive a more significant transfer. 

Estate planning  strategies:

Spend it – enjoy yourself. There is no Inheritance Tax (IHT) liability if there is nothing to  pass on.

Outright gifts – you can take advantage of annual exemptions and allowances to gift assets throughout your life.

Tax wrappers – different investment structures are subject to different  tax treatments. From trusts to investments that qualify for business relief, and pensions, there are many ways a financial planner can create a wealth transfer plan.

Protection – can form a part of the strategy to provide liquidity to cover some, or all, of the IHT bill, or any other associated costs with death. It is crucial protection if structured correctly with the use of a trust.

It is important to review your cash flow forecast to assess how much money you might need to maintain your lifestyle, consider future long-term care needs, and how you might use any surplus efficiently . A wealth planner can help you work this out.

Good estate planning can help you place the right wealth in the right hands at the right time. It allows you to consider your views on lifetime gifting, post death legacy, and designing an IHT mitigation strategy through non contentious structures and gifting plans.

"Estate planning is not just considering how to move assets down the family tree, or what happens when you die. It is about ensuring that you enjoy your life and have the standard of living that you aspire to. Dovetailed with that, it is about ensuring your wealth is in the right hands at the right time. Every individual is different, so it is important to have a bespoke and tailored plan to meet your objectives and aspirations." Chris Allen, Director Wealth Planning.


Speak to an advisor about your wealth transfer strategy

Arbuthnot Latham uses sophisticated cash flow modelling to ensure all of your objectives are taken into consideration, from lifestyle factors, to control, access, and income considerations. If you are considering your estate plan, Arbuthnot Latham’s wealth planners can help.


Further reading about Wealth Planning



Wealth protection strategies

Three of the most common wealth protection strategies and our advice on how to safeguard your wealth for generations to come.


Protecting your business interests

Many businesses don’t have a succession plan in place and starting the process can be daunting. Find out how to take the first step with Arbuthnot Latham.


Control over your wealth

What is wealth management? Arbuthnot Latham explains the importance of a good wealth management strategy.

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