Ansons Law with offices across Birmingham and the Black Country, is working with Depledge Strategic Wealth Management, a Manchester-based financial planning firm with £330m of assets under advice, to help their respective clients put the right legal and financial plans in place.
Both organisations have seen a marked increase in estate and succession planning enquiries so far this year.
Around £100bn has until now passed between generations in the UK each year via property, savings and investments, according to HMRC data cited in a 2023 report by think tank Demos.
From April 6, 2027, under the Finance Act 2026, unused pension funds - historically one of the most tax-efficient ways to pass on wealth with no IHT payable - will fall within the scope of IHT for the first time, removing a route many families assumed would pass on wealth intact. Frozen nil-rate bands are already drawing more estates into the net.
In certain circumstances, after the changes come in, with a 40 per cent IHT rate applied alongside a 45 per cent income tax rate, the effective tax rate on an inherited £1m pension pot could be as high as 67 per cent.
Martin De Ridder, solicitor and managing director of Ansons, said: "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.
"For some people, the changes in April 2027 will be potentially disastrous if they do not seek expert financial planning advice alongside sound legal counsel.
"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 per cent under the new rules. That’s a brutal shock if you’re not prepared, which is why we’re working with expert financial planners like Depledge to ensure our clients have a plan in place for when this IHT storm hits."
A married couple with children holding a £1m pension alongside £2m in other assets could face combined taxes and loss of reliefs increasing from £400,000 to £940,000.
An eye-watering 0 per cent-to-81 per cent tax hike on inherited pension funds could see a combination of taxes on their estate and inherited pensions rise from £400,000 to £940,000.
Once income tax on the inherited pension is added and the loss of residence nil rate band is factored in, up to £810,000 of extra tax would relate to the £1m pension - a worst-case effective rate of 81 per cent.
Andrew Day, managing director and founder of Depledge, said: "Earlier this year we advised law firms to act now to help their clients prepare for the IHT change in April 2027, so we are encouraged to see Ansons Law showing leadership in this area.
“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.”
Former Chancellor Rachel Reeves said the aim of her new IHT regime was to discourage the use of pensions as a wealth transfer tool.
Day added: “We have one client who managed to reduce his immediate tax exposure ahead of next April’s law change by entering into a civil partnership with his long-term partner.”
