Inheritance Tax (IHT) planning has always been a sensitive subject. It’s a tax that people hate to think about, yet it affects more families than ever before. And with possible changes on the horizon, financial advisers are in a challenging position—we have to keep up with evolving rules while helping clients navigate an emotionally charged topic.
But here’s the truth: the toughest conversations are often the most important ones!
🔍 The IHT Landscape is Changing—Are You Prepared?
The UK’s current IHT threshold has remained unchanged for years, despite rising property values pulling more estates into the tax net.
Talk of potential changes—from thresholds to reliefs and exemptions—creates even more uncertainty.
From April 2026, IHT Relief for business and agricultural assets will be capped at £1million and From April 2027, pensions will be considered as part of the estate any unused pension pots will be subject to IHT at a rate of 40% which the government have said will raise approx. £1.5billion.
Yet, many families avoid discussing the implications, assuming they have plenty of time to plan.
As a financial adviser, I see this all too often. Clients assume that IHT won’t apply to them, only to find out too late that a significant portion of their estate could end up with HMRC instead of their loved ones.
I recently spoke with a client who thought their estate was well below the IHT threshold. After reviewing their assets—including property and investments—they were shocked to see how much of their estate could be taxed. Fortunately, by planning early, we were able to put strategies in place to protect their wealth for their family.
Louise Gilman, Founder of LSG Financial
⚖️ The Adviser’s Challenge: Balancing Logic and Emotion
Discussing IHT isn’t just about numbers—it’s about family, legacy, and making difficult choices. Advisers aren’t just strategists; we often play the role of mediator, helping families approach tough conversations that can be uncomfortable but necessary.
💬 Let’s talk about it…
Should you gift assets now? Will your family be able to afford the tax bill? How do you ensure fairness among beneficiaries?
These aren’t easy questions but avoiding them can lead to unintended consequences.
🗣 Why You Need to Start Talking Now
Whether IHT rules change soon or not, the need for planning remains.
Without a clear strategy:
✅ Your estate could face a 40% tax charge on anything above the threshold.
✅ Family members may struggle with unexpected tax bills at an already difficult time.
✅ Opportunities to use reliefs and exemptions effectively could be lost.
Having open discussions with family and a trusted financial adviser now can make all the difference.
Early planning means more control, more options, and, ultimately, less stress for those left behind.
📌What Can You Do Today?
✔️ Review Your Estate’s Position – Do you know how much your estate is worth and whether it falls into the IHT threshold?
✔️ Understand Your Options – Gifting, trusts, and other strategies can help reduce your liability, but they require careful planning.
✔️ Talk to Your Loved Ones – Making your wishes clear and discussing plans in advance can prevent family disputes later.
✔️ Seek Professional Advice – The rules are complex and subject to change. A conversation with a financial adviser can help you structure a plan that works for you and your family.
🚀 Final Thought: Avoid the ‘I Wish I Had’ Moment
IHT planning isn’t just about wealth—it’s about ensuring your legacy is passed on in the way you intend. The sooner you act, the more choices you have.
As advisers, we understand how tough these conversations can be. But we also know they’re necessary.
If you haven’t started thinking about your IHT position, now is the time.
Let’s make sure your loved ones are prepared, not just for the tax bill, but for a future built on thoughtful planning.
If you have questions or want to discuss your estate planning, I’m here to help.
if you’d like to start planning today. Don’t leave it too late
Talk to us today and take control of your estate’s future
