Wills, Trusts & Probate

The 2027 Pension Rule Changes | What They Mean for Your Will and Estate Plan

For many years, defined contribution pensions occupied a unique position in UK estate planning. Beyond providing income in retirement, pensions served as an exceptionally tax-efficient mechanism for passing wealth to the next generation. Historically, unspent pension funds generally sat outside an individual's estate for Inheritance Tax (IHT) purposes, meaning standard estate strategy often focused on preserving pension capital wherever possible while using other taxable assets during lifetime. However, following tax changes set to take effect from 6th April 2027, unused pension funds and death benefits will be brought into the scope of Inheritance Tax.

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