Can a Financial Advisor Help With Inheritance Tax?

A financial adviser can calculate your current IHT exposure across all assets, including property, savings, and investments. They can advise on lifetime gifting strategies, recommend business relief investments that become IHT-exempt after two years, and arrange life insurance policies written in trust so the payout covers the IHT bill without forming part of your estate.

They can also help set up trusts for passing wealth to children or grandchildren, and monitor your plan as tax rules change. The planned inclusion of pension funds in estates from April 2027 is one such change that needs attention now.

An independent (whole-of-market) IFA is preferable to a restricted adviser, as they can recommend any suitable product. For legal documents like wills and trust deeds, you will still need a solicitor alongside your adviser.

A financial adviser starts by mapping your full estate: property, pensions, investments, life policies, and business interests. They calculate your projected IHT bill based on current HMRC thresholds and reliefs, then build a strategy to reduce it. The investment side is where they differ from a solicitor. They can recommend Business Relief qualifying investments that become 100% IHT-exempt after two years of ownership. They can restructure existing portfolios so your money works harder while also reducing your taxable estate. They also arrange whole-of-life insurance policies written in trust. The payout covers the IHT bill your executors will face, without adding to the estate itself. For couples, they coordinate both estates so that nil-rate bands, residence nil-rate bands, and spousal exemptions are used in the right order. Ongoing, they monitor legislative changes (such as the planned inclusion of pensions in estates from April 2027) and adjust your plan before new rules bite. A good adviser reviews your position annually and flags when action is needed.

Most IFAs charge an initial planning fee plus ongoing management fees. The initial fee for a full IHT plan typically runs between 1% and 2% of the assets being advised on, with minimum charges of around £1,500 to £3,000 depending on complexity. Some firms offer a fixed project fee instead. Ongoing fees (for portfolio management and annual reviews) usually sit between 0.5% and 1% of assets under management per year. You can read more about typical IHT adviser costs on our dedicated FAQ page. Before engaging anyone, confirm they are FCA-authorised by checking the Financial Services Register. Only regulated advisers can legally recommend investment products for IHT planning. Ask whether they are independent (whole-of-market) or restricted to a limited panel of providers, because this affects the range of solutions they can offer you. For most estates above the nil-rate band, the fees pay for themselves many times over. A single BR-qualifying investment recommendation can save £100,000 or more in IHT.

Financial advisers handle investment-based IHT planning, but they cannot draft legal documents. If you need a will, a trust deed, a deed of variation, or a lasting power of attorney, that work belongs to a solicitor. Probate is another area where a solicitor takes the lead. Completing the IHT return for HMRC (IHT400), applying for the grant of probate, and administering the estate are legal processes that sit outside an adviser's remit. For complex family situations (blended families, overseas assets, business succession planning tied to shareholder agreements), you will likely need both professionals working together. The solicitor handles the legal structure and the adviser handles the financial products that sit inside it. If your estate is straightforward and you only need a will, a solicitor alone may be sufficient. But if your estate exceeds the nil-rate band and you want active strategies to reduce the bill (BR investments, pension drawdown planning, gifting programmes, trust-based insurance), you need an inheritance tax planning specialists on your team alongside the legal side.