UK Inheritance Tax Overhaul Expected to Affect Millions by 2027

As retirement approaches or begins, Americans are encouraged to update their estate plans to reflect changes in financial, familial, and legal circumstances, including beneficiaries, executors, and power of attorney designations, especially with new provisions from the Secure 2.0 Act affecting retirement accounts. Executors managing estates that are asset-rich but cash-poor face challenges covering immediate costs such as taxes and maintenance without liquidating assets prematurely, for which estate loans or inheritance advance loans offer a viable short-term financial solution to preserve estate value. Common estate planning mistakes, such as DIY wills or unclear asset intentions, often lead to disputes and costly litigation, emphasizing the importance of professional guidance and careful planning to avoid family conflicts. In the UK, significant inheritance tax reforms set for April 2027 will include unused pension funds within the taxable estate and freeze allowances until 2030, substantially broadening the number of estates subject to tax and increasing the financial burden on heirs, thereby making early and comprehensive estate planning critical. These changes reflect a growing complexity in estate and inheritance planning on both sides of the Atlantic, underscoring the need for continual review and adjustment of estate arrangements to protect assets and ensure intended distributions.