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  "path": "/money/inheritance-tax-changes-could-increase-bills-pensions",
  "publishedAt": "2026-05-20T18:28:50.000Z",
  "site": "https://www.gbnews.com",
  "tags": [
    "HMRC issues inheritance tax update ahead of 'nightmare' raid on pension savings",
    "HMRC confirms pension schemes can withhold YOUR retirement savings under inheritance tax shake-",
    "Pension inheritance tax raid to be 'one of the biggest challenges' for families next year",
    "The GB News Editorial Charter"
  ],
  "textContent": "\n\n\nFamilies across Britain are being warned they could face inheritance tax bills averaging an extra £34,000 under major pension rule changes due to take effect from April 2027.\n\nThe reforms will see most unused pension funds and certain pension death benefits included within estate calculations for inheritance tax purposes for the first time.\n\n###\n\n\n\n\nFinancial experts warned the changes will not only increase the tax burden on families but could also create significant administrative problems for grieving relatives attempting to settle estates.\n\nMaike Currie, vice president of personal finance at PensionBee, said: \"An admin nightmare is waiting in the wings for grieving families\".\n\n###\n\n\n\n\nTRENDING\n\nStories\n\nVideos\n\nYour Say\n\n###\n\n\n\n\nThe changes are intended to prevent savers from using pension funds primarily as a way to pass wealth to future generations instead of drawing down the money during retirement.\n\nHowever, experts warned the reforms could leave executors and family members struggling to trace multiple pension pots accumulated throughout a person's working life.\n\nMs Currie said personal representatives handling estates would effectively need to become \"pension detectives\" under the new system.\n\nShe explained that relatives and executors could be \"expected to track down old workplace schemes, historic pension pots and online-only accounts, often with incomplete records and missing passwords\".\n\nThe warning comes as many workers now hold several pension pots spread across different employers and providers after changing jobs over the course of their careers.\n\n###\n\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nExperts said this could create major complications for grieving families trying to piece together somebody's finances after their death.\n\nFinancial advisers are now urging savers to review and update their Expression of Wishes forms with pension providers before the reforms come into force.\n\nThese forms allow pension holders to specify who should receive pension funds if they die before withdrawing the money.\n\nMany savers complete the paperwork when first opening a pension and then fail to revisit it for years, potentially leaving outdated information or former partners listed as beneficiaries.\n\nMs Currie said: \"One simple but important thing people can do now is ensure their expression of wish forms detailing their beneficiaries are up to date with all pension providers\".\n\n### LATEST DEVELOPMENTS\n\n\n\n\n  * HMRC issues inheritance tax update ahead of 'nightmare' raid on pension savings\n  * HMRC confirms pension schemes can withhold YOUR retirement savings under inheritance tax shake-\n  * Pension inheritance tax raid to be 'one of the biggest challenges' for families next year\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nShe explained that ensuring the forms are current could significantly reduce the administrative burden placed on family members after a death.\n\nDespite concerns over the reforms, Ms Currie said HMRC had confirmed some pension death benefits should still be released relatively quickly in most cases while inheritance tax liabilities are being resolved.\n\nShe said: \"There is a bit of good news for bereaved families with HMRC confirming that, in most cases, up to half of pension death benefits should still be able to be paid out relatively quickly while inheritance tax liabilities are being settled\".\n\nTransfers of pension wealth to spouses and civil partners living in the UK will remain exempt from inheritance tax, although they may still need to be formally reported.\n\n###\n\n\n\n\n###\n\n\n\n\nExperts also noted pension providers may choose to temporarily retain part of a pension death benefit until any tax liabilities have been calculated and settled.\n\nThis could help prevent families from needing to sell assets or access other funds to cover inheritance tax demands.\n\nMs Currie said the reforms meant pension organisation would become increasingly important for estate planning.\n\nShe added: \"Pension housekeeping is about to become essential estate planning\".\n\n###\n\n\n\n\n\n\n\n\n\n\n**Our Standards: The GB News Editorial Charter**",
  "title": "Inheritance tax changes could increase bills by £34,000 as pensions dragged into estates"
}