A major shift is coming for inheritance planning. From 6 April 2027

A major shift is coming for inheritance planning. From 6 April 2027, most unused pension funds and death benefits will be included in the value of a person’s estate for inheritance tax (IHT) purposes, potentially affecting estate values and tax liabilities significantly. Crucially, death-in-service benefits paid through registered pension schemes will remain exempt. The responsibility for reporting and settling any IHT due will fall to personal representatives (PRs), not pension administrators.

While many estates won’t be impacted, estimates suggest over 1.5% of estates will be liable for IHT for the first time, and another 1% will face higher tax. This development underscores the importance of early, thoughtful estate and pension planning.

If you're advising clients on estate strategy or recruiting legal professionals for estate planning, financial advice, or pensions work, it’s time to act. Legal and financial teams must be ready to guide families through this new landscape with clarity and compassion.

🔗 Read the full HMRC policy paper here:
https://heyor.ca/0g0EEC

#EstatePlanning #InheritanceTaxh #PensionChanges #FinancialAdvice​