There is rarely a perfect moment to talk about money with older relatives. The subject can feel uncomfortable, and many families put it off indefinitely. But avoiding the conversation has its own costs — practical, financial and emotional. The longer these discussions are delayed, the fewer options tend to be available when decisions eventually need to be made.
The pressures prompting these conversations are real and growing. Research suggests the life expectancy of a 50-year-old in the UK is now around 86, meaning many of us will need to finance over three decades in later life. More than 1.3 million people in the UK are currently juggling care responsibilities for both children and ageing parents. The number of workers aged 65 and over increased by 36 per cent between 2014 and 2022. These are not abstract trends — they are the backdrop to the financial decisions many families are navigating right now.
Review living costs and budgets together
One practical starting point is to help older relatives review their day-to-day expenses. Working through a household budget together — covering necessities, discretionary spending, insurance policies, subscriptions and utilities — can surface savings they may not have considered. Younger family members are often better placed to research better rates online or identify policies that are no longer needed or competitively priced.
It is also worth checking whether all available tax allowances are being claimed. The marriage allowance, for example, is frequently unclaimed by eligible couples, and checking entitlements costs nothing.
Think ahead on Inheritance Tax
Rising property values, frozen IHT thresholds and the forthcoming changes to pension IHT rules, due to take effect in April 2027, mean that more families are likely to face an IHT liability than in previous generations. Planning for this while there is still time to act is considerably more effective than trying to address it after the fact.
Strategies worth considering include lifetime gifting, use of the annual gift exemption, loan trusts and other structures that can reduce the taxable value of an estate over time. The right approach depends on the overall position of the estate, the income needs of the individual during their lifetime and the tax implications of different options.
This is an area where professional advice is genuinely valuable — the interactions between different planning tools can be complex, and mistakes can be costly.
Make sure wills are up to date
A surprising number of families do not have current wills in place, and many who do have ones that no longer reflect their circumstances. Marriage automatically invalidates a previous will, meaning a new one is needed. Significant life events — births, deaths, divorce, a change in assets — are all good reasons to review and update.
Taking the time to discuss the contents of a will as a family can provide reassurance and reduce the likelihood of disputes later. Clarity about wishes, communicated while everyone is around to hear them, is one of the most practical gifts a family can give itself.
Set up a Lasting Power of Attorney
A Lasting Power of Attorney (LPA) gives a trusted person the legal authority to make decisions about finances or healthcare on someone’s behalf if they become unable to do so themselves. Setting one up is straightforward while a person has mental capacity; once that capacity is lost, the process becomes considerably more complex and expensive.
Many families delay this because it feels like planning for the worst. In practice, it is one of the most pragmatic steps anyone can take, and the peace of mind it provides for both the individual and their family is significant.
Plan for care costs
Long-term care is one of the larger financial risks in later life and one of the least commonly planned for. Care costs can erode significant wealth over time if not planned for in advance. Options such as immediate needs annuities can provide tax-free income paid directly to a care provider, helping to protect remaining assets while ensuring the person receives the care they need.
Starting these conversations early — ideally before care is imminent — means the full range of options remains available.
We work with families across Worcestershire and Warwickshire who are thinking through exactly these kinds of decisions. Whether you are approaching retirement yourself or helping older relatives put plans in place, we are happy to talk through the options.
The Financial Conduct Authority does not regulate tax or estate planning. Tax treatment depends on individual circumstances and may be subject to change. This article is for information only and does not constitute personal financial advice.