The Executor Trap: How Government Changes Put Your Family’s Inheritance in Jeopardy

In this episode, Christian and Kevin revisit the hot topic of the government’s proposed inheritance tax (IHT) changes affecting pensions from 2027. Following a surge in listener interest, they clarify what’s changed, who’s now responsible, and what practical steps listeners must take to protect their wealth and family.

Key Discussion Points:

• Background:
  • The government plans to tax pensions on death, a major shift from past policy.
  • The responsibility for reporting and paying this tax will now fall on personal representatives (executors), not financial services companies.
• Why This Matters:
  • Most executors are chosen for trust, not financial knowledge.
  • Executors are now legally liable for getting it right – mistakes could mean personal financial penalties.
• Practical Risks:
  • Many people don’t know where all their pensions are or which are taxable.
  • Appointing a professional executor (like a bank) could cost families a significant portion of their inheritance, sometimes unnecessarily.
• Action Steps:
  • Review your will and your choice of executors.
  • Ensure your executor is financially savvy or has access to professional advice.
  • Consolidate pensions where sensible for simplicity and clarity.
  • Avoid defaulting to professional institutions as executors without understanding the costs.
• WealthBuilders’ Support:
  • WealthBuilders is creating two practical guides:
    1. For those making a will (how to choose an executor)
    2. For executors (what their new responsibilities entail)
  • Guides will be available soon at wealthbuilders.co.uk/IHT and wealthbuilders.co.uk/executor
• Final Advice:
  • Awareness is key: know your assets, your will, and your executor’s readiness.
  • Take action now—don’t wait until it’s too late.

Call to Action:

• Sign up for the forthcoming guides at wealthbuilders.co.uk/IHT
• Review your will and executor choices
• Share this episode with anyone who has a pension and a family
• Contact WealthBuilders with questions or to book a call via the website

Resources Mentioned:

• Download our free guide on inheritance tax changes for pensions: wealthbuilders.co.uk/IHT 
• Be the first to access our upcoming Guide for Executors — register your interest here: wealthbuilders.co.uk/executor
• Catch up on WealthTalks episode on IHT changes: How to Protect Your Pension from Inheritance Tax Changes Coming in 2027

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