Choosing an Executor: A Decision Worth Revisiting

Insights Worth Knowing

Advanta understand that making a Will is one of the most important steps in any client’s estate plan. Yet the people appointed to carry out those wishes often receive far less consideration than the assets being distributed.

That may need to change.

Upcoming changes to inheritance tax treatment on pensions are expected to place greater responsibilities on executors and personal representatives, making the role more complex than many people realise.

Why the Role of Executor Is Changing

Historically, executors have been responsible for gathering information about an estate, settling liabilities and ensuring assets are distributed in accordance with a Will.

However, changes affecting pension death benefits from April 2027 could expand those responsibilities significantly. Most pension death benefits are expected to become potentially liable for inheritance tax, creating additional reporting and administration requirements.

The new framework is designed to involve personal representatives, pension schemes, beneficiaries and HMRC, reflecting the growing complexity of estate administration.

New Responsibilities

Under recent guidance published by HMRC, personal representatives are expected to become primarily responsible for reporting and paying any inheritance tax due on pension benefits. Beneficiaries may also become jointly responsible in certain circumstances.

The proposals also include arrangements allowing pension schemes to withhold a proportion of benefits while tax liabilities are being determined.

For many families, these may appear to be technical details. In practice, however, they increase the importance of selecting executors who are capable of managing potentially complex financial and administrative responsibilities.

Is It Time to Review Your Will?

Many Wills were written years ago and may no longer reflect current legislation, family circumstances or financial arrangements.

Reviewing your will can be an opportunity to:

• Confirm your wishes remain up to date
• Review executor appointments
• Consider the role pensions play within your estate
• Ensure family members understand your intentions
• Reduce potential complexity for loved ones

For those who have not yet written a Will, these changes provide another reason to act sooner rather than later.

Worth Knowing

Estate planning is not only about who receives your assets. It is also about ensuring the people responsible for managing your affairs have the knowledge, confidence and support to carry out your wishes effectively. That clarity can be one of the most valuable gifts you leave behind.

Tax treatment varies according to individual circumstances and is subject to change.

The Financial Conduct Authority does not regulate Inheritance Tax advice.

We are not tax or legal specialists and therefore should you require advice in this area we recommend you speak with a suitably qualified accountant or solicitor.