Estate Administration: Changes to Pension IHT 'Will Complicate Estate Administration'
Thursday 13th February 2025
Katy Baxter
Consultation has now closed on the UK government's plans to charge inheritance tax (IHT) on unused pension funds and death benefits from 6 April 2027, as announced at the 2024 Budget statement. Some respondents say the scheme will cause significant delays in payouts to beneficiaries and place a significant administrative burden on pension scheme administrators (PSAs). PSAs will become liable for reporting and paying any IHT due, although after 12 months the beneficiaries will become jointly and severally liable for the tax. Overall there is much uncertainty over these changes so we will keep you informed as and when we receive the details of what is published. If you would like to read the scope of the HMRC consultation please…
Majority of Cohabiting Couples ‘Unaware of Inheritance Risks Without a Will’, Poll Reveals
Thursday 10th October 2024
A new survey conducted by Will Aid has revealed an “alarming gap” in public understanding about inheritance laws affecting cohabiting couples. The survey found that 68% of cohabitees were unaware of the rules of intestacy and what happens to their estate if they die without a will. This lack of awareness could have devastating consequences for many families across the UK, as cohabiting couples—regardless of how long they have lived together or whether they have children—are not automatically entitled to inherit from one another if one partner dies without leaving a Will. Key findings from the poll, include: • 32% mistakenly believe their estate would automatically pass to their partner • 17% admitted they were unsure what would happen • 11% said…