The way pensions are treated for inheritance tax (IHT) is set for a big shake up in April 2027 when unused pension funds will count as part of a client’s estate and become liable to IHT.
In preparation for the change, the government announced a consultation on the liability, reporting and payment of IHT at last October’s Budget.
That consultation ended late in January 2025. But what are its conclusions likely to be? And what do paraplanners need to know so you, your firm and its clients are ready when the reforms go live?
What do you and your clients need to know?
Those are the questions that M&G‘s head of technical, Les Cameron, addressed when he joined us for an online Assembly to explores what the changes could mean for paraplanners and your clients (or clients of clients if you’re outsourced or freelancing).
What you can expect to take away from this Assembly?
Together with Assembly host Richard Allum, Les shared his thoughts on how the new IHT framework will affect pension death benefits after 2027. The conversation to covered things like:
- Whether it makes sense to think about taking money out of pensions earlier than planned
- Why bypass trusts might be making a comeback
- How the pension reforms could affect red-amber-green assessment
- Practical steps paraplanners can take now to prepare for the changes
Stop press: post-event answers to questions raised in the chat
There were loads of questions from paraplanners in the chat but, because we ran out of time, Les posted his responses to them in this thread at The Big Tent.
