Is Your Wealth Plan up to Date? Why 2025 is a Critical Year to Plan

While the current economic environment presents challenges—rising inflation (again), interest rate uncertainty, and shifting global dynamics—it also creates opportunities for individuals to review how their wealth is structured, protected, and passed on.

How can you safeguard your assets during challenging times?

While wills remain a vital part of estate planning, some of the most effective strategies to protect and pass on wealth occur during your lifetime—especially in an unstable market environment.

Is now really a good time to make gifts or transfer assets, given the economic climate?

Yes — and possibly more so than in previous years. With asset values stabilising after recent volatility, there remains a valuable window for tax-efficient giving. Transferring assets now can help lock in future growth outside your estate, reduce exposure to Capital Gains Tax (CGT) and Inheritance Tax (IHT), and take advantage of current tax rules ahead of any potential legislative change.

Tax

It may feel counterintuitive to take financial action during the current market. However, these market conditions can present unique tax planning advantages. For example, when asset values drop, so too does the potential exposure to capital gains tax on any gifts made.

Since CGT is based on the gain realised from an asset rather than its current market value, gifting a depreciated asset could significantly reduce your immediate tax liability. Yet this potential benefit is often overlooked by individuals focused solely on IHT.

Trusts

Transferring assets into trusts during periods of lower valuations can offer a “double win”:

• CGT deferral – When assets are placed into a qualifying trust, CGT can often be deferred to the trustees, providing flexibility for future planning.
• Increased gifting threshold – A lower asset valuation means that more can be transferred into trust without immediately triggering inheritance tax thresholds, offering greater protection for family wealth.

What types of assets are most suitable for gifting or placing into trust?

Assets that have declined in value but are expected to recover—such as shares, property, or business interests—are particularly suitable. By transferring them now, you reduce the tax exposure on today’s value while allowing future appreciation to occur outside your estate.

Does a trust offer protection from political or legal changes?

While no strategy is completely future-proof, trusts can offer a strong layer of protection against legislative changes, divorce, creditor claims, or political shifts that impact personal wealth. They’re a key part of many long-term asset protection plans.

Can I still access the assets if I place them into a trust?

That depends on the type of trust. Some trusts allow for a degree of flexibility or benefit to the settlor (person creating the trust), while others are more rigid to achieve optimal tax savings. It’s important to get tailored advice based on your goals and needs.

Offshore structures and global compliance

For internationally mobile families or those with cross-border interests, offshore trusts and foundations remain valuable planning tools. However, increased scrutiny under global reporting regimes such as DAC6 and the Common Reporting Standard (CRS) means compliance is more important than ever.

Careful structuring, full transparency, and clear documentation are essential to avoid unintended tax consequences.

Domicile and residency planning

Political and legislative uncertainty has also prompted some individuals to reassess their domicile and tax residency. Moving to a different jurisdiction or clarifying non-dom status can form part of a wider wealth protection strategy—but these steps require tailored advice and careful timing to be effective.

Take control of your planning

It’s natural to be cautious, but with the right legal and financial advice, it’s possible to make confident, forward-looking decisions. Thoughtful asset structuring and tax-efficient strategies can help ensure that your wealth not only weathers the storm—but is better positioned for the future. Whether you’re looking to protect your estate, provide for future generations, or explore your options in a shifting economic landscape, we’re here to help.