Kings Court Trust explores how the UK’s 2024 Autumn Budget could reshape pension and Inheritance Tax (IHT) planning. One of the key proposals is the inclusion of unused pension funds in the value of a deceased person’s estate for Inheritance Tax purposes, a significant shift from the current rules that often allow pensions to pass on tax-free.
Scheduled to take effect from April 2027, this change is aimed at curbing the use of pensions as a means of wealth transfer rather than as retirement income.
Our latest blog highlights the potential administrative burden these changes may place on pension scheme providers, who could be responsible for reporting and even paying IHT directly from the fund. This adds new layers of complexity for both families and estate administration professionals managing a person’s affairs after death.
Given these developments, Kings Court Trust encourages individuals to reassess their estate planning strategies. Options such as accessing pensions earlier, making lifetime gifts, or using Trusts may become more relevant in mitigating future IHT liabilities. Kings Court Trust stresses the importance of seeking expert legal and financial advice to navigate these changes effectively and to ensure that plans remain tax-efficient and aligned with personal goals.
Click here to read the full blog.
This article was submitted to be published by Kings Court Trust as part of their advertising agreement with Today’s Wills and Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills and Probate.
