Bereaved families already face an emotionally overwhelming and administratively complex time when handling a loved one’s estate. And now from April 2027, new inheritance tax (IHT) rules are set to make this process even more challenging - particularly for executors and personal representatives.
According to recent articles in the Daily Mail and Mail on Sunday, pension experts are warning that the new rules could create a bureaucratic nightmare, forcing families to track down potentially decades-old pension information and settle any tax owed within six months, or risk penalties.
Former Pensions Minister Ros Altmann called the proposals ‘unworkable’, adding:
“These pension burdens on ordinary bereaved relatives are wholly disproportionate. Nobody would want to be an executor or personal representative once they realise what these new rules mean.”
With concerns also raised about the risk of a double tax burden, legal professionals and financial experts are calling for urgent simplification before the rules take effect.
What is changing - and how can you prepare? What the 2027 pension - IHT changes mean for executors
Historically, many pensions have fallen outside the scope of inheritance tax because they were considered separate from the estate or discretionary in nature.
Under the new rules proposed to begin in April 2027:
Executors will be responsible for tracking down all pension information. This includes:
- Workplace pensions
- Personal pensions
- Old frozen pensions from past employment
- Any private schemes or drawdown arrangements
With people typically working multiple jobs during their lifetime, many families could face the daunting task of locating forgotten policies - sometimes spanning decades.
Pension providers must supply valuations - but delays are common
Executors will need to contact each provider, request documentation, and chase responses. Pension administrators often face long backlogs, which can significantly slow progress.
Tax must be calculated and paid within six months
This is one of the most shocking aspects. Even if pension providers delay their information, the executor will still be legally responsible for meeting IHT deadlines. Executors, which are often family members simply trying to do their best, could be personally liable for errors or delays.
Why are experts are calling it a ‘pensions nightmare?’
Legal commentators describe the changes as burdensome, confusing and impractical.
Key concerns include:
- A disproportionate administrative load on grieving families
- Pension tracing often takes months, sometimes over a year
- Complex pension types (e.g., SIPPs, drawdown arrangements, death benefits) add to the workload
- Difficulty in calculating whether tax is even owed
- Lack of clarity around what happens when pension providers don’t respond in time.
For many, acting as an executor will no longer feel like a manageable duty, but a highly technical responsibility.
How Coles Miller solicitors can help executors navigate the changes
Our Wills & Probate team has extensive experience guiding executors through even the most complex estates - including those involving multiple pensions, investments and tax implications.
We can support you by:
- Locating and identifying all pensions
We help executors track down old or forgotten pensions, make formal enquiries and ensure nothing is missed.
- Liaising with pension providers
Our team handles the communication, chase-ups and documentation so executors don’t have to.
- Ensuring accurate tax calculations and compliance
We analyse the pension information, determine whether IHT applies, and ensure that valuations and tax assessments are completed correctly.
- Preventing penalties by meeting strict deadlines
With the new six-month rule looming, professional oversight becomes essential. We work proactively to avoid late-payment interest and penalties.
- Reducing stress for grieving families
Most importantly, we take the administrative burden off executors so they can focus on their families at a difficult time.
Planning ahead: what you can do now
The new rules may not come into force until 2027, but early preparation is key. Here are some simple steps that we recommend:
Reviewing your pension paperwork:
Many people accumulate multiple pensions over their working lives - often from different employers or personal schemes. Take time to gather all your pension statements, old payslips, scheme booklets and provider letters. Check which pensions are active, which are preserved (from past employment), and whether any have guaranteed benefits or death-in-service provisions. Keeping this information organised ensures your executor won’t have to hunt through years of documents or contact dozens of providers,
Keep a list of providers and policy numbers
One of the biggest challenges for executors under the new rules will be tracking down every pension. Creating a simple document that lists each pension provider, policy number, date last reviewed, and any login details (stored securely) will save enormous time later. If you prefer, we can help prepare a formal ‘Pension Summary Schedule’; a clear, solicitor-approved list that future executors can rely on with confidence.
Ensuring your Will is up to date
An outdated or unclear Will can cause serious delays to estate administration. Make sure your Will reflects your current wishes, financial arrangements, and family circumstances. Review it especially after major life events: marriage, divorce, bereavement, home purchases or retirement. Keeping your Will current helps executors understand your intentions, prevents disputes and avoids unnecessary complications when administering pensions and other assets. Read more here
Talking to family about where key documents are stored
Executors often struggle to find paperwork because they don’t know where it is kept. Let your family or chosen executors know where they can find your Will, pension files, insurance documents, property deeds and bank information. If documents are stored digitally, make sure someone knows how and where they can be accessed. You do not need to share the contents - just the location. This simple step can prevent major administrative delays.
Seeking legal advice if you are due to act as an executor
Acting as an executor is already a significant responsibility - and the 2027 pension tax changes will make the role more complex. Speaking to a specialist probate solicitor early can help you understand your duties, deadlines and the potential penalties for mistakes. Coles Miller can guide you through the entire process, handle communications with pension providers, calculate tax liabilities and ensure you meet all legal requirements. Early advice reduces stress, protects you from personal liability and helps the estate run smoothly from start to finish.
More information about inheritance tax here
Our specialists can help you get organised now - which can reduce stress and further cost later.
Need Help with Probate, Pensions or Estate Administration?
For expert legal advice, contact Coles Miller Partner Anthony Weber, Head of the Wills and Probate Department. He has three decades of legal experience, specialising in wills, probate, living wills, administration of estates, powers of attorney and dealing with the Court of Protection and the Office of the Public Guardian.
Tony is a member of the Law Society’s Private Client Section (formerly the Probate Section).
Tony is also on the steering group of Broadstone Stepping Stones, a Dementia Friends group and a Trustee of the Growing Compassionate Communities charity which is principally focused on supporting vulnerable adults and their carers. He is based at Coles Miller’s Fleetsbridge office.
