Caroline Foulger discusses the importance of early estate planning in IFA Magazine
Caroline’s comments were published in IFA Magazine, 15 September 2025, and can be seen here.
Caroline Foulger, Partner in our Private Client department, discusses the government's proposed inclusion of unused pension funds within the scope of inheritance tax (IHT) from April 2027.
She explains how this change could significantly increase the number of estates subject to IHT, affecting not just the wealthy but also many “average” families. With thresholds frozen until 2030 and pensions no longer exempt, the average estate could face an additional £40,000 in tax, making IHT planning more urgent and complex.
Caroline highlights that estate planning must now be a proactive, family-wide conversation. Traditional strategies like gifting surplus income, using exemptions, and setting up discretionary trusts may become more relevant again. She also notes that life insurance and careful Will structuring could play a greater role in mitigating future liabilities. However, she cautions that gifting decisions must be balanced with considerations around future care needs and financial security in later life.
Ultimately, Caroline argues that the shift in pension tax treatment demands more thorough and collaborative planning. Families must navigate differing views on inheritance and tax, and advisers should facilitate open discussions to ensure plans reflect both financial realities and personal values.
With fewer straightforward options available, early and phased planning is key to managing the impact of these changes.
Read the full article on the IFA Magazine website [external link].