18 Months Pension IHT Countdown - Life Insurance in Trust? Pension on Death Expression of Wishes?

We have been regularly highlighting the fact that unused pension funds on death will be included in your estate on death and therefore potentially subject to Inheritance taxes from 6^th April 2027.  That is just 557 days away or 18 months and 11 days away.  This means millions of estates may now be subject to inheritance taxes over the coming years.

You are probably already planning your holiday or special birthday, or house project/move or car purchase for 2026/27 but what about inheritance taxes?

HMRC inheritance tax revenue continues to set new records every month and we are going to continue to ‘bang the drum’ with warnings about this disgusting tax on death (or in life) for wealth accumulated from hard wark, income and savings that has already been taxed in life anyway.

We have offered a series of videos and articles on ways to plan, reduce, and mitigate inheritance taxes with gifting, investments in trusts and many more:

See Inheritance Tax Channel https://www.financialadvice.net/inheritance/video_channel/2269/18

We have even launched an IHT Review Service:  Later Life & Inheritance Tax Review

Start planning now …

Your IHT Checklist:

Is Your Life Insurance Policy in Trust?  Yes/No

• If it is in trust, it is outside your estate on death and will be paid to your loved ones inheritance tax free.
• Using just a simple 2-page form can put your existing life insurance policy in trust.

Reviewed Your Pensions on Death Expression of Wishes?  Yes/No

• Most pension funds are set up as discretionary trusts i.e., your pension pot is held in trust for you, ready for payment to you in life at retirement or to your loved ones on death.
• When you started the pension, you will usually have completed an expression of wishes form i.e., who you would like your pension pot to go to on death.
• This could be you legal spouse, your children, your ‘common law’ unmarried partner.
• If you have left some or all your pension fund to your legal spouse, it will be inheritance tax free on death.
• If you have left some or all your pension fund to your legal children or unmarried partner, it will be inheritance tax free on death.
• Is it time to get married or enter civil partnership if not married.
• It is definitely time to review beneficiaries on death and consider changing to legal spouse/civil partner if you have left your pension to children or others?
• You can easily contact your pension company to changed you ‘Expression of Wishes’ on death.

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