Inheritance Tax, Pensions and Wills: Why now is the time to review your plans

For many people, inheritance tax (IHT) has always felt like something that only affected the very wealthy. However, with major changes to pension rules due to come into effect from April 2027, more families may now find themselves affected than ever before.

At Ness Gallagher Solicitors, we are increasingly speaking to clients who want to ensure their affairs are organised properly, their loved ones are protected, and their wishes are clearly set out in a valid Will.

While we are not financial advisers and cannot provide specialist tax or investment advice, it is important to recognise when professional planning may be needed. In many cases, working with both a solicitor and a regulated IFA can help ensure your estate planning is joined up and effective.

Historically, many pension pots sat outside of a person’s estate for inheritance tax purposes. However, the UK Government has confirmed that from 6 April 2027, most unused pension funds and pension death benefits will be included when calculating inheritance tax liability. This means that people whose estates may have been below the threshold for IHT now have to think about – and plan for – an IHT bill on death. 

This is a significant change and may affect:

• people with substantial pension savings
• homeowners with rising property values
  
• business owners
  
• families who assumed pensions would pass tax-efficiently to children or grandchildren
  

Even if IHT is not currently a concern, having an up-to-date Will remains one of the most important steps you can take. A properly drafted Will can:

• ensure your assets pass to the people you choose
• appoint guardians for children
  
• make administration easier for your family
  
• reduce the risk of disputes
  
• help coordinate wider estate planning strategies
  

Without a Will, the law decides who inherits your estate – your property, your money and your possessions – which may not reflect your wishes.

As pension and inheritance tax rules evolve, it is also sensible to ensure that beneficiary nominations, trusts, and estate planning arrangements are reviewed regularly alongside your Will.

Inheritance tax planning is increasingly complex, particularly where pensions, investments, business assets, or gifting strategies are involved, and specialist tax and financial planning advice should always come from a qualified and regulated IFA.

The upcoming reforms are a reminder that estate planning should not be left until later in life or ignored altogether. A simple review of your Will and wider arrangements today could help avoid complications for your family in the future. At Ness Gallagher Solicitors, we can help you put the right legal documents in place and work alongside your financial adviser where appropriate.