You might have clients who think they don’t need to worry about their legacy because they don’t have any children or close relatives.
Yet, creating an estate plan is crucial, no matter what an individual’s family situation is. Without one, your clients won’t have control over the distribution of their assets or their future care.
Instead, the courts may be empowered to make such decisions on their behalf, potentially leading to unintended outcomes.
So, here are a few things your clients need to think about. Feel free to share this blog with them if you think it would be useful.
Without an estate plan, your clients’ wealth could pass to the Crown
If you have a client who passes away without a will and they have no close living relatives, their estate will be distributed according to the rules of intestacy.
This means that the local authority will try to track down family members to pass their wealth on to – starting with the closest relatives and moving on to more distant relations.
If no eligible beneficiaries can be found, your client’s estate will usually be passed to the Crown (the government).
According to UK government figures, in 2023/24, receipts from estates passed to the Crown reached £17 million. So, this situation may be more common than you expect it to be.
In contrast, putting an estate plan in place could give your clients control over what happens to their assets after they’re gone. This may offer valuable peace of mind and avoid unintended consequences.
An estate plan could allow your clients to make important decisions about their future care
Estate planning isn’t just about passing on wealth and personal belongings; it also allows individuals to make key decisions about what happens if they become incapacitated.
In this situation, if your client doesn’t have a Lasting Power of Attorney (LPA; more on this later), the Court of Protection will typically appoint someone to take care of their health and financial wellbeing.
For an individual who has no next of kin, the court may choose a professional, such as a solicitor. This could mean that someone your client doesn’t know may be entitled to make important decisions about their wealth and future care.
On the other hand, careful estate planning could ensure that your clients’ finances and healthcare are managed according to their wishes.
3 important steps your clients could take now to protect their assets and their wishes
Nobody knows what’s around the corner, so it’s never too early to begin estate planning.
Here are three important steps your clients may want to consider taking if they have no next of kin:
- Create a Lasting Power of Attorney
An LPA is a legal document that nominates one or more people (“attorneys”) to manage an individual’s affairs if they become unable to do so themselves.
There are two types of LPA:
- Health and welfare – This gives attorneys the authority to make decisions about an individual’s personal health and welfare.
- Property and financial affairs – This authorises attorneys to manage financial matters and property.
Registering both types of LPA allows individuals who have no close relatives to choose one or more attorneys they trust to make key decisions about their life. This could provide valuable reassurance and ensure that their wishes are followed in the future, no matter what happens.
- Write a will
Family members are not the only people who can inherit a person’s assets.
Your clients may have close friends, neighbours, or valued employees who they wish to leave some of their wealth or personal belongings to.
Alternatively, they might want to leave a charitable legacy to a cause that’s close to their heart.
So, writing a will could ensure that your client’s estate is distributed according to their wishes, rather than being passed to unintended beneficiaries or the Crown.
Read more: Estate planning and your will – 5 important factors you might have overlooked
- Make provisions for beloved pets
According to the People’s Dispensary for Sick Animals (PDSA), 51% of the UK population owns a pet.
So, there’s a good chance that some of your clients may have a beloved cat, dog, or other animal who they want to provide for after they’re gone.
This might involve:
- Naming a specific person or “pet guardian” to look after a pet or pets in their will
- Leaving funds to the nominated pet guardian or setting up a trust to cover the cost of the animal’s upkeep
- Including a clause in their will that outlines how the pet should be cared for, such as routines and dietary requirements.
Get in touch
We hope this guide helps your clients understand the importance of estate planning, whatever their financial situation is.
If you know someone who might benefit from professional support in planning how to pass on their wealth, we can help.
Email hello@sovereign-ifa.co.uk or call us on 01454 416653.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate estate planning, trusts, Lasting Powers of Attorney, or will writing.
Approved by Best Practice IFA Group Ltd on 12/6/25