Estate planning has always been the domain of tax advisers, lawyers, and investment managers. They structure trusts, draft wills, and arrange life policies to manage inheritance tax (IHT) and ensure wealth passes to the next generation. But in 2025, an essential tool is still too often missing from the conversation: property finance.

For high-net-worth (HNW) and ultra-high-net-worth (UHNW) families, real estate is not just another asset class — it is often the cornerstone of wealth. Yet property is illiquid by nature. It cannot be divided or accessed quickly without sale, and that creates friction at the very moment liquidity is most needed: when tax liabilities arise, probate delays bite, or heirs need to equalise inheritances. In these moments, property finance can make the difference between a smooth transition and a fire sale.

Despite its importance, property finance is frequently treated as an afterthought in estate planning. This oversight risks undermining carefully laid strategies.

Why Property Finance Is Often Ignored

One reason property finance is overlooked is cultural. Estate planning has traditionally focused on legal structures and tax optimisation, while lending is seen as transactional. Advisers may assume wealthy families do not “need” finance because they are asset-rich.

In practice, the opposite is true. Families who are heavily invested in property often lack liquidity. They may own £50 million in assets but have only a fraction available in cash. When HMRC demands a multi-million-pound IHT payment, that imbalance can become critical.

Another reason is complexity. Lenders apply criteria that do not always align neatly with trusts, offshore structures, or intergenerational transfers. Lawyers and tax advisers, focused on compliance, may shy away from introducing lending into estate plans, fearing disruption. The result is that finance enters the picture only at the point of crisis — when options are most limited.

The Consequences of Leaving Finance Out

When finance is not integrated into estate planning, families face a series of risks:

• Forced asset sales: Heirs may be compelled to sell prime property quickly, often below market value.

• Unequal inheritances: Where property must be sold to meet liabilities, intended distributions may be distorted.

• Family disputes: Financial strain can exacerbate tensions, particularly where expectations about inheritance differ.

• Missed opportunities: Without liquidity, families may be unable to capitalise on investment opportunities that arise during transitions.

These consequences are not hypothetical. As explored in our article on Probate Finance in 2025, executors regularly find themselves navigating urgent liquidity crises. Without pre-arranged finance, they are often forced into reactive decisions that erode wealth.

How Property Finance Supports Estate Strategies

When included proactively, property finance becomes a stabilising force in estate planning.

Liquidity for IHT and Probate

Borrowing against property assets provides the immediate liquidity needed to settle tax bills, without disrupting portfolios. This buys time for life insurance payouts or asset sales to be executed on favourable terms. We explored this interaction in Whole of Life Policies and Property Finance, where lending bridges the gap between liability and insurance settlement.

Equalising Inheritances

Where one heir inherits property and another receives liquid assets, finance can help balance the scales. By refinancing a property, cash can be released to equalise distributions without forcing sales.

Supporting Intergenerational Transfers

Younger generations may not meet conventional mortgage criteria. Specialist lenders and private banks, however, often consider broader wealth when assessing affordability. This enables heirs to retain family property rather than losing it due to income tests — an issue we covered in Intergenerational Property Finance.

Flexibility for Trustees and Family Offices

For trusts or family offices, finance provides optionality. Facilities can be arranged in advance and drawn only when needed, ensuring liquidity is available without committing to premature sales.

Real Life Example: Avoiding a Forced Sale of a Prime Estate

A family with a £30 million countryside estate faced an IHT bill exceeding £10 million. Their estate plan included a whole of life policy, but the payout would not arrive in time to meet HMRC’s deadline. Without liquidity, the executors would have been forced to sell one of the estate’s core properties under time pressure.

By arranging a private bank facility secured against the estate, the family was able to cover the liability. When the insurance payout arrived, the loan was repaid. The estate remained intact, and the family legacy was preserved.

This example illustrates how property finance is not an afterthought but a linchpin. Without it, even the best-structured estate plans can unravel.

Why Specialist Brokers Are Essential

Integrating property finance into estate planning requires more than approaching a bank. It demands a whole-of-market view. Not all lenders will accept trust ownership, cross-border structures, or intergenerational arrangements. Some will decline outright, as we discussed in When Private Banks Decline Trust-Based Lending.

Specialist brokers bridge this gap. They understand lender appetites, know how to present complex cases, and work alongside lawyers and tax advisers to ensure finance supports — rather than undermines — broader strategies. Without this expertise, families risk either being declined or accepting terms that do not align with their objectives.

Reframing Property Finance as a Strategic Tool

The key shift required in 2025 is to stop viewing finance as reactive and start treating it as strategic. For HNW families, borrowing is not a sign of weakness but a tool of preservation. It provides liquidity when it matters most, ensures estates are not dismantled under pressure, and allows legacies to pass intact across generations.

Estate planning is strongest when finance is part of the conversation from the outset. By collaborating with brokers alongside lawyers, accountants, and wealth managers, families can build strategies that withstand the realities of liquidity demands.

How Willow Can Help

At Willow Private Finance, we place property finance at the heart of estate planning conversations. We are not tax or legal advisers — and we never stray into those domains — but we are experts at ensuring liquidity is available when it is needed.

Our role is to:

• Structure facilities that align with trusts, insurance, and inheritance strategies.

• Identify lenders with appetite for complex ownership structures.

• Work with family offices, trustees, and legal advisers to integrate lending into wider plans.

• Protect families from being forced into reactive, value-eroding sales.

With more than 20 years of experience working with HNW and UHNW families, we know how to secure solutions where others cannot. By giving property finance its rightful place in estate planning, Willow helps families preserve both wealth and legacy.

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