If you're approaching retirement or thinking about how to pass on your wealth to loved ones, there's one area of financial planning you shouldn't overlook: your estate. With the government’s recent confirmation that pensions will be subject to inheritance tax (IHT) from April 2027 - significantly impacting the way families manage and pass on their assets - it's crucial to review your estate planning now. 

What’s changing with Inheritance Tax and pensions? 

For many years, pensions have been considered one of the most tax-efficient ways to transfer wealth. In most cases, unused pension funds passed to beneficiaries on death were exempt from inheritance tax. 

However, starting 6 April 2027, the government plans to change that. Under the new rules: 

• Unused defined contribution pension pots will be included in your estate for IHT purposes 

• If your estate exceeds the IHT threshold (currently £325,000), your beneficiaries could face a 40% tax charge on anything over the threshold – including your pension funds 

• Additionally, if the person who inherits the pension draws income from it, they may also pay income tax on withdrawals 

This means that some beneficiaries could face a double tax burden—potentially leaving far less than expected. 

Why is this important for you? 

Leamington Spa is home to a growing number of people with substantial pensions, rising property values, and long-term savings. Even those who don’t consider themselves “wealthy” may find that their estate could now fall into the inheritance tax net. 

Frozen tax thresholds, combined with rising asset values, mean more families are at risk of an IHT liability, even if they haven’t actively planned for it. 

If your assets include: 

• One or more private pensions 

• A family home (or investment property) 

• Savings or ISAs 

• Business interests or inherited wealth 

… then this change could have real implications for your estate and how much of it your loved ones receive. 

Why independent financial advice is so important 

Working with an independent financial adviser in Leamington Spa ensures you receive unbiased, regulated guidance tailored to your personal circumstances.  

Here’s how our local, professional advice can help: 

✅ Understand your full financial position 

Our experienced advisers can help you assess your pension values, property, savings, and other assets to give you a clear picture of your estate’s IHT exposure—especially considering the 2027 pension changes. 

✅ Plan withdrawals strategically 

Should you start drawing from your pension now to reduce its value before 2027? Or should you rely on other assets first? We can model different scenarios based on your goals and tax position. 

✅ Make use of tax reliefs and allowances 

We can help you use exemptions such as the annual gift allowance, the residence nil-rate band, and spousal transfers. We can also explore tools like trusts, business relief, or life insurance to help cover future IHT liabilities. 

✅ Coordinate wills, pensions and estate documents 

Pension death nominations, wills, and trusts should all be reviewed in tandem. As local advisers, we can work alongside your solicitor or accountant to make sure everything is up to date and tax-efficient. 

✅ Provide ongoing support as the law evolves 

Tax rules don’t stand still. We monitor policy changes and offer proactive reviews so you’re not caught out by new legislation or missed opportunities. 

What to expect from an estate planning review 

We offer a free, no-obligation engagement meeting to help you get started. This is a quick, practical conversation about your goals and whether we can help you achieve them. If you choose to work with us, we’ll then hold a much more detailed discovery meeting to: 

• Map out your assets and liabilities 

• Review your pension and estate structure 

• Estimate your future IHT liability 

• Discuss available planning strategies 

• Suggest next steps 

Whether you’re preparing to retire, writing a will, or simply want clarity about your financial future, this meeting can be a helpful starting point. 

Get started with estate planning today 

Estate planning is about more than just tax—it’s about ensuring your wealth ends up in the right hands, with minimal stress or cost to those you care about. With the upcoming inheritance tax change on pensions, it’s essential to review your plans well in advance. 

If you’re looking for independent financial advice in Leamington Spa, we’re here to help. Our team works with clients across Warwickshire to provide clear, reliable, and personal guidance. 

Book your free engagement meeting

Ready to take the first step? Contact us to arrange your free initial meeting. 

 

Get in touch

 

Please note, the value of investments can go down as well as up and you may get back less than the amount invested.