Beyond the Will: Why Tax Implications and STEP-Qualified Expertise Are Essential in Estate Planning

Instructing a lawyer to draft your Will is often seen as a straightforward exercise: setting out who should inherit your assets and appointing those who will administer your estate. In reality, a Will is only one component of a far broader legal and financial framework.

Without careful consideration of tax implications, particularly inheritance tax, an otherwise well-drafted Will may fail to achieve its intended purpose.

At its core, estate planning is not simply about distribution; it is about preservation.

The Risk of a Narrow Approach

Many individuals approach Will drafting as a discrete legal task. However, a Will that does not properly account for tax exposure can result in significant and avoidable erosion of wealth. In the UK, inheritance tax is charged at 40% on the value of an estate above the applicable thresholds. For high net worth and internationally connected families, the exposure can be materially higher once cross-border assets and multiple jurisdictions are involved.

A lawyer who focuses solely on the formal validity of a Will, without integrating tax considerations, may inadvertently leave beneficiaries with a substantial and unnecessary liability.

Why STEP Qualification Matters

This is where the distinction between a general practitioner and a specialist becomes critical. A lawyer who holds the Trust and Estate Practitioner designation from Society of Trust and Estate Practitioners (STEP) has undergone rigorous, internationally recognised training in both inheritance law and taxation.

STEP-qualified practitioners (TEPs) are specifically trained to approach estate planning holistically. Their expertise is not limited to drafting Wills; it extends to:

• Inheritance tax planning and mitigation

• The use and structuring of trusts

• Cross-border succession and tax coordination

• Wealth preservation across generations

• Practical administration of estates

This dual competence in both legal and tax disciplines ensures that a Will is not merely valid, but effective.

Tax Efficiency Is Not an Afterthought

Effective estate planning requires a coordinated approach. This includes:

• Understanding the composition and location of assets

• Assessing domicile and residence status

• Considering available reliefs and exemptions

• Structuring ownership appropriately (including through trusts or corporate vehicles)

• Aligning the Will with lifetime planning strategies

The Will must operate as part of this wider structure. For example, provisions relating to trusts within a Will—whether discretionary or otherwise—can significantly influence the tax outcome. Similarly, the interaction between a Will and lifetime gifts must be carefully managed to avoid unintended consequences.

A STEP-qualified lawyer is trained to integrate each of these elements into a cohesive strategy.

The Importance of Cross-Border Expertise

For international families, the complexity increases. Different jurisdictions may impose their own succession laws and tax regimes, sometimes simultaneously. A Will that is effective in England may not be sufficient to deal with assets held abroad, and tax liabilities may arise in more than one country.

In such cases, it is essential to instruct a lawyer who understands not only domestic tax rules but also how they interact with foreign systems. STEP practitioners, by virtue of their international focus and network, are particularly well placed to advise in these scenarios.

Strategic Planning v Administrative Drafting

There is a fundamental distinction between drafting a Will and advising on estate planning. The former is administrative; the latter is strategic.

A properly advised Will should:

• Minimise tax exposure within the bounds of the law

• Provide flexibility for future changes in circumstances

• Integrate with trusts and other wealth-holding structures

• Anticipate potential disputes and mitigate risk

• Ensure that assets pass efficiently and as intended

This requires a lawyer who is not only technically proficient in Will drafting but also demonstrably competent in tax and trust structuring—qualities inherent in a STEP-qualified practitioner.

Conclusion

A Will is one of the most important legal documents an individual will execute. However, its effectiveness depends not only on how it is drafted, but on the quality of the advice that underpins it.

When instructing a lawyer, it is therefore essential to ensure that they can provide comprehensive guidance on tax implications. In practical terms, this means instructing a STEP-qualified lawyer—someone trained and experienced in both inheritance law and taxation.

Without this level of expertise, there is a real risk that a carefully considered estate plan may be undermined by avoidable tax liabilities.

In estate planning, the question is not simply who inherits—but how much ultimately reaches them. 

About the Author

Sheikh Najam TEP is a City of London-based Notary and international private wealth lawyer, authorised to practise law throughout England and Wales, appointed by the Court of Faculties and regulated through the Faculty Office of the Archbishop of Canterbury.

A full member (TEP) of the Society of Trust and Estate Practitioners, he advises high net worth and ultra-high net worth individuals, families, and their advisers on cross-border trusts, estate planning, inheritance tax, probate, and complex private wealth structures.

His practice focuses on the structuring, preservation, and transfer of wealth across jurisdictions, often involving multi-jurisdictional assets, international families, and closely held business interests. He is also engaged in complex private wealth disputes and is an accredited mediator and arbitrator, adopting an outcome-focused and enforcement-conscious approach.

Sheikh is frequently instructed by solicitors, accountants, family offices, and international advisers on matters requiring technical precision and cross-border coordination.