Law firm partners with wealth manager to tackle inheritance tax challenges

Ansons Law, located in Cannock, Staffordshire, has partnered with Depledge Strategic Wealth Management, based in Manchester, to assist families in preparing for significant changes to inheritance tax (IHT) that will come into effect in just eight months. The Finance Act 2026 is set to include unspent pension pots within the scope of IHT, a move that many families might perceive as "potentially disastrous". As both firms have experienced a surge in inquiries concerning estate and succession planning, they aim to help clients navigate these new complexities effectively.

From April 6, 2027, unused pension funds, which have long been a tax-efficient means of passing on wealth, will be subject to inheritance tax for the first time. This change could significantly alter the landscape of wealth transfer in the UK, where around £100 billion has typically passed between generations annually via property, savings, and investments, according to the latest data from HMRC.

Martin De Ridder, solicitor and managing director of Ansons, stressed the urgency of the situation: "As well as wills, trusts and probate services, we are increasingly helping clients with estate planning, asset protection and long-term succession planning to safeguard their family's financial future." He highlighted the severe implications that changes to tax laws could have on families, noting that "a pension pot that can currently be inherited entirely tax-free could, in the worst case, suffer an effective tax rate of up to 67% under the new rules."

Furthermore, a married couple with a £1 million pension alongside £2 million in other assets could see their tax burden increase dramatically, from £400,000 to £940,000, reflecting an astonishing effective tax rate of up to 81% when accounting for combined taxes.

Andrew Day, managing director and founder of Depledge, echoed similar sentiments, remarking, "By working with law firms like Ansons, we are helping our clients put the right legal structures and financial plans in place to protect their families’ wealth. The message is: act now."

While the prospect of the impending tax changes creates uncertainty, effective planning strategies can help mitigate the impact. Such strategies may include structured gifting programmes, redirecting surplus funds to beneficiaries' pension arrangements, and utilising exemptions. The advice from both Ansons and Depledge underscores the importance of seeking timely professional support to ensure families are not caught unprepared when this IHT storm arrives.

With the new IHT regime set to reshape how wealth is passed on, the partnership between law and financial planning experts underscores the vital role of proactive planning for individuals hoping to safeguard their legacies.