Estate Legal Solutions

13/05/2026

🚨 Technical note: IHT on Pensions 🚨

HMRC has published its Technical Note on bringing unused pension funds into Inheritance Tax (IHT).

Here is quick a summary below:

1️⃣ Who Pays the Tax? Originally, the Autumn 2024 Budget proposed that Pension Scheme Administrators (PSAs) would be liable for reporting and paying the IHT due on pensions. HMRC has officially reversed this. Personal Representatives (PRs) / Executors will now be legally liable for reporting and paying the IHT due on unused pension funds and death benefits.

2️⃣ What is Caught? From 6 April 2027, most unused pension funds and pension death benefits will be added to the value of a deceased person’s estate for IHT purposes. If the total estate (including the pension) exceeds the available nil-rate bands, the excess is taxed at 40%.

3️⃣ Death in service benefits payable from a registered pension scheme will remain out of scope of Inheritance Tax.

4️⃣ The New "Withholding" & "Payment" Notices. To help executors manage potentially large IHT liabilities, the legislation introduces two critical tools:

🔷 The Withholding Notice: If an executor believes IHT will be due on a pension, they can issue a "withholding notice" to the pension scheme. This legally prevents the scheme from paying out more than 50% of the death benefits to beneficiaries for up to 15 months, giving the executor time to calculate the tax.

🔷 The Payment Notice: Executors (and beneficiaries) can issue a "payment notice" directing the pension scheme to pay the IHT directly to HMRC out of the pension funds (provided the tax bill is £1,000 or more). The scheme then has 35 days to pay HMRC.

💡 What this means for clients and advisers: The administrative burden has just shifted entirely onto grieving families and their executors. PRs will now have to locate all pension pots, obtain valuations, report them to HMRC, and figure out how to pay a potentially massive IHT bill before probate is granted.

More details in the link below.

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02/12/2025

LASTING POWER OF ATTORNEY (LPA)

We once spoke with a perfectly healthy 50 year old who laughed when LPAs were mentioned. “I’m too young for that sort of thing,” he said.

Six months later, he unfortunately had a serious stroke. Suddenly, his family were trying to sort finances without authority and nobody could access his accounts to pay the bills.

LPAs aren’t about age, they’re about preparedness. You hope they’ll sit in a drawer forever, but if you need one, you’ll be very glad it’s there. If you never need it, it will be the best money you ever ‘wasted’.

24/11/2025

🛑 Thinking about letting AI write your Will or other legal documents? Read this first.

We love technology as much as anyone; when our legal software was updated with the most sophisticated AI, we got very excited. However we have received a number of messages such as “ai has written my Will, can you check it?”. 🤦🏼‍♀️

When it comes to legal documents, your Will, Power of Attorney, contracts, trusts, and anything that affects your family, finances, or property should not be substituted with AI. We have even corrected our own AI software when it gets something wrong!!

Lawyers and legal professionals spend years getting qualified:
📚 Law school
⚖️ Specialist exams
📝 Supervised practice
⏳ Years of real experiences dealing with complicated family situations.

Legal documents aren’t “one-size-fits-all.” A tiny mistake, wrong phrase, or missing clause can mean:
❌ Your wishes aren’t followed
❌ Family disputes
❌ Documents being thrown out in court
❌ Extra costs and delays for the people you care about

AI can’t understand the full context of your life, your assets, your relationships, or the specific laws that apply to your situation. It can’t give legal advice, spot unique risks, or consider the emotional side of planning for the future.

By all means, use AI for ideas, explanations, or learning the basics but when it comes to protecting your family and everything you’ve worked for, trust a qualified human being. Otherwise you may find it’s too late when AI says “thank you for spotting that, this is the reason I was incorrect”.

Latest example below on something that could be easily googled and researched (amended company articles) but chat gpt produced incorrect results, not just once but twice.

21/08/2025

🚨 Important Notice: LPA Registration Fees Increasing

Have you been putting off your Lasting Powers of Attorney?

From 17 November 2025, the registration fees for Lasting Powers of Attorney (LPAs) will rise by £10. This means for a single person, the total cost for both LPAs will increase by £20, and for a couple, the increase will be £40.

If you’ve been meaning to submit your LPAs, now is the time to act before the fees rise!

To get started, simply give us a call at 0800 433 27 28 and we’ll guide you through the process.

Estate Legal Solutions

06/08/2025

Which excuse do you use? 🤔

I haven’t written a Will because:

😓I have nothing to give away
🙋‍♀️Everyone has something! A few hundred pounds, a dodgy CD collection, these are your assets and you should decide who gets them

💃I’m too young
🙋‍♀️Sadly, death doesn’t understand "ages"

🤑It’s too expensive
🙋‍♀️The cost of your Will reflects the complexity of your Estate. Protecting your loved ones from stress and heartache is priceless

⌚I don't have time
🙋‍♀️Once you start the process, you’ll realise that writing a Will does not take as long as you may think

🙈I’m not ready to make big decisions
🙋‍♀️Your Will is not “once and for all” and can be amended as many times as needed to reflect any changes in your situation

👫My spouse/partner will get everything anyway
🙋‍♀️Wrong!! If married, your spouse will receive the first £322k with the rest of the Estate being divided equally amongst any children - partners get nothing!!

😫I don’t know where to start
🙋‍♀️When you contact us we will guide you through everything step by step so there is no need to feel overwhelmed

🙏I'm not planning on dying anytime soon
🙋‍♀️I'm sure none of us are, but there's no harm in being prepared

🗓I’ll do it tomorrow
🙋‍♀️Unfortunately, tomorrow is never guaranteed...

30/07/2025

🌟✨ Celebrating Success at Estate Legal Solutions ✨🌟

We're thrilled to announce that Viki has successfully completed her STEP Advanced Certificate in Will Preparation! 👏

Viki’s dedication to enhancing her expertise showcases her commitment to providing our clients with the highest level of service. The STEP (Society of Trust and Estate Practitioners) qualification is renowned for equipping professionals with the knowledge needed to navigate the complexities of Wills and Estate Planning.

By obtaining this prestigious certification, Viki can offer invaluable insights and tailored solutions to ensure that your estate planning reflects your wishes and secures your loved ones' future with the security that STEP guarantees.

Here are just a few benefits of working with a STEP-qualified professional like Viki:
✅ Expert guidance on Will preparation and Estate Planning
✅ Peace of mind knowing your affairs are in trusted hands
✅ Regulated and insured up to £2M

Join us in congratulating Viki on this remarkable achievement! If you have any questions about your Will or want to start your Estate Planning journey, you can feel confident to get in touch and speak to an expert.

29/07/2025

The Government has confirmed that it will indeed push forward with plans for pensions to fall into the IHT net from April 2027 🔔

A few improvements made from the original draft, but overall summary as follows:

- Personal representatives responsible for declaring and paying IHT

- For IHT due on the pension, can opt for pension administrator to pay to HMRC directly

- No shift on 6 month timescale for paying IHT, despite the noted complexity and extended timescales that will likely apply to those dealing with estates. After 6 months, late payment interest will begin to accrue on any unpaid tax.

- Income tax will still apply to any inherited pension left over after IHT paid. Something which was strongly opposed but unfortunately not changed.

- Death in service benefits will be outside scope of IHT

With many suggesting a flat rate tax on inherited pension wealth, for a simpler tax raise. The response to this was that “The Government is clear that it intends to bring pensions within the scope of IHT and is consulting on the best way to do that… Not for alternative methods of levying tax on pensions”.

All in all, still messy with a lot of unanswered questions. But one thing that is clear, the Government does not look to be budging on the implementation of this come 2027 ‼️

If you would like more information regarding how this affects your Wills and Estate Plan, please get in touch.

20/07/2025

Recently separated?

Time for a Will Check-Up!

In light of recent events involving a certain high-profile CEO, it's a timely reminder of how quickly circumstances can change. Whether it's a shift in relationships, financial status, or family dynamics, ensuring your Will reflects your current wishes is crucial.

📝 Why Review Your Will?

We always say to review your Will at least every 3-5 years and some of the reasons below are WHY:

**Life Changes:**
Marriages, divorces, births, and deaths can all impact your estate plan.

**Asset Updates:**
New investments, properties, or significant purchases should be included.

**Legal Updates:** Laws change, and keeping your Will current ensures it remains valid and effective.

Take a moment to review your Will and make any necessary updates. If you’re not sure what your Will does, we offer free reviews. Simply email a copy of your Will to [email protected] and quote FREE REVIEW.

30/10/2024

Budget Updates! (Estate Legal Solutions Edition)

📌 IHT (Inheritance Tax) Nil Rate Band & Residence Nil Rate Bands frozen until 2030

📌 Business/Agricultural Property Relief is to be capped at £1million, with only 50% relief above this value. AIM shares have been directly targeted, now only attracting 50% Business Property Relief.

📌 Unspent pension pots (including death benefits payable from a pension) will be brought into a person's estate for IHT purposes.

📌Tax avoidance clamp down.

📌 CGT (Capital Gains Tax) - lower rate up from 10% to 18% and higher rate from 20% to 24% (residential rates remain the same).

📌 Non-Dom tax regime abolished. Residence based scheme to be implemented; another huge change to come.

📌 SDLT (Stamp Duty Land Tax ) – from tomorrow, Higher Rates will rise from 3% to 5% on those buying additional property.

📌 Income Tax thresholds will not continue to freeze - from 2028 they will be uprated in line with inflation.

📌 Late payment interest rates to HMRC to go up.

📌 The maximum amount allowed in an ISA will be frozen at £20,000 until 2030

Unfortunately the changes to pensions are jaw-dropping. So, if you die with any pension pot left then it will be taxed to IHT. This is regardless of whether you die before or after 75 years of age.

Not only can you not take it with you, it seems that now you can't leave it behind.

If you would like to discuss any of these changes and how they impact your Estate Planning, please wait for the full legislation to be released and we would be happy to assist.

24/08/2024

Well, gather round, my financially savvy friends, because it seems the government has decided to play a little game of “Guess What We Just Scrapped!” Spoiler alert: it’s the cap on care costs! Yes, that’s right—your life savings are fair game for the care home buffet, and guess what? Your money is on the menu!

Picture this: you’ve spent years stacking your cash like a squirrel preparing for winter, only to find out that once you pass, if your loved one needs care, those hard-earned pennies might just disappear faster than you can say “financial planning.” It’s like a magic trick gone wrong—now you see your legacy, now you don’t!

Now, the rules are as baffling as trying to solve a Rubik’s Cube blindfolded. You’ve got to pay for your own care, fair enough, but you’re not obligated to cough up a single penny for anyone else’s care.

But fear not, a meticulously crafted Will can legally put a stop to this nonsense! You can say, “Not my precious pennies, thank you very much!” Your loved ones can dip into their own treasure chests while yours remains safe and sound, protected like a dragon guarding its gold!

So, what are you waiting for? Contact us now for a sprinkle of free wisdom on this important issue! Remember, a little planning today can save you from a mighty muddle tomorrow!

📞 0800 433 27 28
💻 www.estatelegalsolutions.co.uk

Local Lawyer and Will Writer in Crowborough offering home visits, emergency Wills, Power of Attorney, estate planning, estate administration, contact Estate Legal Solutions. For all your estate planning needs.