The proposed inheritance tax changes for unused pensions from April 2027, are inevitably sparking conversations around tax.
Discussion around who will pay more, and how many more estates will become liable are certainly valid talking points. However, for private client professionals responsible for administering estates, a couple more pressing questions merit attention: what about the increased risk and how will firms cope with the additional workload?
The reality is that the proposed changes will involve administering more complex estates and many more will fall under the new IHT rules then before, opening the door to increased risk. In reality this means more financial information will need to be gathered from multiple providers. It also means potential delays and the chance for human error. When most firms are already working at full capacity, it’s a challenge that needs to be planned for carefully.
Complexity Adds Risk
Estate administration has always involved a balance of legal expertise and detailed administration.
The IHT400 for example, and its associated schedules, is already one of the most detailed and time-consuming forms in the estate administration process. Firms have shared with us that in some cases it can take a full day to complete properly.
When additional asset information comes to light late in the process, figures then need to be updated consistently throughout the entire form. Detailed data entry and repetitive work likes this naturally creates risk of human error. And, as more estates become liable for inheritance tax, the volume of this administration is only likely to increase.
It only takes a missed digit or a figure not updated following new asset discovery for inaccuracies to creep in. At the very least, one small error could lead to HMRC queries resulting in delays and dissatisfied beneficiaries. In the worst case, a firm could be liable for professional negligence.
Technology Support
Here’s where we believe technology can play a key role to support private client teams. The greatest gains come from removing repetitive administration that offers little value to clients. It also saves unbillable time that is often needed to amend or correct forms or accounts. Automatically populating forms, carrying information across documents, updating figures consistently and reducing manual data entry is a bread and butter for task for today’s advanced legal tech. In fact, tech can complete data replication and calculations far faster and more accurately than any person can and it’s more accurate therefore reducing risk.
At Exizent, we see these benefits every day. Firms appreciating software that removes hours of administration, allowing those solicitors to spend more time advising clients and supporting bereaved families.
Lara Waddell, legal assistant at Warners in Edinburgh uses Exizent and described just how significant that difference has been: “We have used Exizent since 2025 to help produce Estate Accounts, create correspondence to institutions to make enquiries about assets, and for IHT400 form completion. The Exizent platform is intuitive and brings everything together. A simple update or change needed within an IHT400 form for example needs to be reflected across the entire form. Exizent swiftly automates this process ensuring accuracy and saving hours, if not days, of repetitive, detailed administration relating to form completion, while also removing any chance of human error.”
This example shows how our technology can deliver real value for private client firms to remove unnecessary administration and also reducing risk.
Questions
There are still questions about exactly how the pension inheritance tax changes will operate when they come into force. However, we do know that many more estates are likely to require IHT reporting. This will result in more and complex administration placing pressure on already busy private client teams. Those that will be best prepared will have invested the time in looking at suitable technological solutions to help them create the most efficient processes such as Exizent.
There can be a certain level of fear surrounding technology. However, these days, tech has been designed for ease of use and for specific real-world applications such as IHT 400 form automation and the creation of estate accounts.
At Exizent, our solution helps private client solicitors manage higher workloads while reducing risk every day.
As Lara Waddell, puts it: “Exizent ensures we get everything right first time every time, and this means we provide an even better service for our clients”.
At Exizent, that’s what drives us: helping private client professionals spend less time on paperwork and more time doing what they do best offering valuable legal advice and guiding families through their bereavement journey as smoothly as possible.
In advance of the IHT changes in relation to pension, find out more about how Exizent’s award-winning solutions here: www.exizent.com
About the author
With 20+ years of experience in the industry. Including senior roles at HSBC, Google, and LexisNexis. Philip jointly leads Exizent’s legal services software business with a focus on commercial growth and strategic partnerships.
This article was submitted by Exizent as part of an advertising agreement with Today’s Wills and Probate. The views expressed in this article are those of the advertiser and not those of Today’s Wills and Probate.
