Estate planning - What to do after a large settlement

Receiving a significant settlement can bring welcome financial security, but it can also raise important questions about how best to protect and manage those funds. Thoughtful estate planning ensures your money is used in a way that supports your long‑term goals and your family’s future.

Our Private Wealth team regularly advises clients on how to structure and safeguard their assets following a settlement, both during their lifetime and beyond.

Review or create your Will

A well‑drafted Will is essential to ensure your estate passes according to your wishes. Without one, the intestacy rules determine how your assets are distributed, which can lead to complications such as:

• Missed tax exemptions or allowances that could have reduced your estate’s tax liability
• Delays caused by tracing missing beneficiaries, or the need for insurance to protect against potential future claims
• Complex distributions to multiple beneficiaries, which can result in higher legal fees and more intricate tax calculations

Updating or putting a Will in place early helps avoid these issues and provides clarity for your loved ones.

Consider whether a Trust is appropriate

Trusts are an effective means of managing wealth with control and long‑term planning in mind.  While some trusts take effect through your Will, others can be created during your lifetime to achieve specific aims or improve tax efficiency.

We can advise on a range of trust structures, including:

• Personal Injury Trusts
• Vulnerable Persons Trusts
• Charitable Trusts
• Discretionary Trusts

Each option offers different benefits depending on your circumstances and objectives.

Put Lasting Powers of Attorney (LPAs) in place

LPAs allow trusted individuals to manage your finances if you become unable to do so yourself. They can also be used with your consent, while you still have capacity, for example during extended travel or periods when you are unable to deal with financial matters personally.

After receiving a significant settlement, LPAs help ensure your finances can be managed easily and reliably if you ever need support.

Seek independent financial advice

We work closely with financial advisers to ensure your overall financial strategy aligns with your estate planning goals. Coordinated advice helps you make informed decisions about how your funds are managed and grown.

Our Private Wealth team is here to guide you through your options and provide tailored advice based on your individual circumstances. If you’ve recently received a settlement and would like to discuss your next steps, we would be delighted to help.