The UK Government’s Budget on 30 October 2024 announced significant changes to the UK’s inheritance tax rules. While these changes have been extensively covered in the press (particularly those affecting agriculture and business property relief as from April 2026), a recent survey commissioned by Scottish law firm Brodies found that a significant proportion of adults over 50 are underprepared and have not yet addressed how these changes might affect them. In fact, the survey showed that only 10% of respondents have had detailed discussions about inheritance with their families, and less than half (41%) have a formal estate plan in place.

As well as the changes to agriculture and business property relief, changes were also announced that will bring pension funds into your estate for inheritance tax purposes as from April 2027. This significant reform of the law serves as a useful reminder to check your own affairs are in order and your Will is reviewed, to ensure you can pass on your family business, your farm or your savings in the best way for you and your loved ones.

Why should you review your Will?

Your Will should reflect your life now, not when you made it, as there could be changes in your own situation or made by law which can affect how your Will is implemented and your estate distributed.

When should you review your Will?

Ideally, you should review your Will every 3–5 years to make sure it is in line with your current circumstances and wishes.

There are also certain life events which would prompt an immediate review, some examples of which are noted below.

If any of these, or other significant events, have happened since you last looked at your Will, now would be a good time for a review.

Change in Family Circumstances

Children or grandchildren: It is essential to review your Will on the arrival of new family members to ensure they are included, and your estate will be distributed fairly. You can also appoint a Guardian to look after children under the age of 16 in your Will.

Marriage, Relationships and Divorce: If there has been a change in your relationship status or within your family, this might require an update to your Will.

Death: Sadly, there may be someone mentioned in your Will who has since passed away, and you should check to see if a change is needed to deal with their share.

Change affecting an Executor

If the person who is named in your Will to act as your Executor has died, has become incapacitated or is no longer suitable, you must update your Will to nominate someone else.

Retirement

Retiring from work is a life-changing event and a time to consider the content of your Will and any estate planning, if necessary.

Care

Your Will may need to be changed to protect your assets if you are contemplating nursing home care in the future or if your partner/spouse has already moved to a care home.

Change in Finances

If there has been a significant increase in your personal finances, for example, you have received an inheritance or acquired any property, investments or business interests, a review is recommended to make sure the division of your estate is fair and any tax benefits are applied.

Similarly, if your finances have decreased or you have disposed of any substantial assets, it could affect the terms of your Will.

Change in the Law

As with the 2024 Budget, tax exemptions and reliefs are updated from time to time, so you should check your Will to make sure you take advantage of any which become available, or make changes to deal with any which might no longer apply for your circumstances.

The recent reform to the Inheritance Tax rules has, for example, impacted on property which qualifies for Agricultural Property Relief (APR) and Business Property Relief (BPR). These are both types of Inheritance Tax Relief, which, under the existing rules, largely meant that farms and businesses could be passed down to the next generation with no inheritance tax payable on those assets.

However, under the new rules, from 6 April 2026, the 100% rate of relief (for an individual) will only be available on the first £1 million of qualifying property. Any qualifying assets valued at more than the £1 million cap will receive a reduced rate of relief at 50%.

If you have agricultural or other business interests, it is essential that you review your current Will and succession plans now to ensure your arrangements align with the revised rules.

Get in touch with us

Our friendly expert team are here to help you review and update your Will to make sure that it reflects your current wishes and to ensure it is tax efficient. Please contact us to schedule a review of your Will or to discuss matters further.