IHT Planning

As Independent Financial Advisers, we often remind clients that one of the most valuable legacies you can leave behind isn’t just money or property—it’s clarity. When someone dies, families are not only grieving but also faced with the daunting task of piecing together financial records, accounts, and obligations. Having everything organised and accessible can make an enormous difference, reducing stress and confusion at an already difficult time.

With upcoming changes to inheritance tax (IHT) rules—particularly the inclusion of pension funds from April 2027—the need to get your records in order has never been greater.

Why organisation matters

When records are scattered—bank accounts in different places, pension details buried in old files, or insurance policies forgotten—executors and family members can spend months trying to locate and verify information. This slows down probate, increases costs, and can even lead to assets being overlooked.

By contrast, a well-organised set of records gives your loved ones a clear roadmap. They know what exists, where to find it, and how to act on it. That clarity is a gift: it saves time, allows for some calm in the storm, and ensures your wishes are carried out smoothly.

Talking to your family

Organisation isn’t just about paperwork—it’s also about communication. Talking openly with your family about your estate and records can lessen the burden and prevent misunderstandings later. Let them know where documents are stored, who your advisers are, and what your intentions are.

These conversations don’t need to be heavy or formal. They can be framed as practical guidance: “Here’s where the important files are kept,” or “This is the adviser you should contact.” By sharing this information, you remove uncertainty and give your family confidence that they can manage things when the time comes.

As one of our clients recently told us, “When mum died, we knew she had financial things all over the place, but her files weren’t very up-to-date. So it was a huge relief to find that she’d been talking to Talis IFA, and that you could provide our solicitor with all the details. There’s still a lot to do as part of applying for probate, but without you, we wouldn’t have known where to start.”

Practical steps you can take

There are several ways to make sure your financial life is easy to navigate after your death:

• Create a central file. Keep a master list of all assets, liabilities, accounts, and policies. Include account numbers, provider details, and contact information.
• Use of digital tools. Secure online storage or password managers can help keep records safe and accessible, but make sure executors know how to access them.
• Work with an IFA. An Independent Financial Adviser can help you compile and maintain a comprehensive record of your financial position, ensuring nothing is missed.
• Update regularly. Life changes—new accounts, property purchases, or pension transfers—should be reflected in your records. A yearly review is a good habit.
• Include instructions. Executors benefit from clear guidance: who to contact, where to find things, and what subscriptions or debts need cancelling. It’s also helpful to leave funeral wishes, so your loved ones can plan with confidence.

The 2027 pension changes – what this means for executors

From April 2027, pensions will be included in the value of an estate for inheritance tax (IHT) purposes. This is a significant change! Executors will need to engage with pension providers to obtain a date-of-death valuation of pension funds, and those values will form part of the estate’s IHT calculation.

For families, this means:

• Pension records must be easy to locate.
• Executors will need provider details and policy numbers to request valuations quickly.
• Families who assumed pensions would pass without IHT may face unexpected liabilities.

Organising pension information now—provider contacts, scheme details, and nomination forms—will save loved ones from scrambling later. It also allows you to plan ahead with your adviser to manage potential tax exposure.

Supporting executors

Executors already carry significant responsibility. They must identify assets, settle debts, file tax returns, and distribute the estate. With pensions entering the IHT net, the executors’ job becomes even more complex.

By leaving clear records, you can make it all more manageable and less stressful. Your executors should be able to open a file and see:

• A list of accounts and approximate balances.
• Pension schemes and provider contacts.
• Insurance policies and beneficiaries.
• Property details, including deeds and mortgage information.
• Liabilities such as loans or credit cards.

This level of organisation reduces delays, avoids missed assets, and ensures compliance with HMRC requirements.

The human side of organisation

It’s easy to see record-keeping as a dry administrative task. But for families, it can be deeply personal. Clarity is comforting. Knowing exactly what needs to be done, and having the information to enable them to do it, allows loved ones to focus on supporting each other rather than chasing paperwork.

Organisation also prevents disputes. When everything is documented, there’s less room for confusion or disagreement about what exists or who is entitled to what.

Final thoughts

Getting your records in order is one of the most thoughtful steps you can take for your family. It reduces the burden on executors, prevents unnecessary stress, and ensures your financial legacy is handled smoothly. With pensions set to fall within inheritance tax from 2027, the need for clear, accessible records is greater than ever.

At Talis IFA, we encourage clients to see this not as a chore but as an act of care. By organising your records, talking to your family, and working with professionals, you can make a difficult time easier for those you love.

If you could use the help of an IFA to understand your potential IHT liabilities, look for ways to mitigate them, and ensure your finances are clearly organised, find a Talis IFA here.