Families risk debt trap over Labour’s pension tax reforms—The Telegraph
Partner Kieran Bowe has been quoted in an article in The Telegraph on the challenges families may face under the Government's proposed inheritance tax reforms for pensions.
The article examines concerns that bringing pensions into the inheritance tax regime from April 2027 could create financial pressure for bereaved families, potentially forcing some to take out short-term loans while awaiting access to estate assets.
Kieran discusses the options available to executors who may be facing inheritance tax liabilities before probate is granted. He highlights that executors can elect to pay inheritance tax by instalments over 10 years rather than in a single upfront payment and explains how this can help ease immediate financial pressures during estate administration.
The option to pay inheritance tax by instalments through HMRC is often overlooked by executors who are less familiar with the process. Executors can elect to pay inheritance tax over 10 years rather than in a single upfront payment. By choosing the instalment option, in most cases only 10pc of the inheritance tax due on non-liquid assets, such as property, must be paid before a grant of probate is issued.
The full article is available to read online from The Telegraph here.
About Kieran
Kieran Bowe is a partner in the private client team. He specialises in the preparation of wills, probate and estate, tax and succession planning and advises on wealth protection, business succession and trusts. He has significant experience in managing complex estates and cross-border matters.
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