Key highlights the need for specialist advice on tax and income risks when gifting from pensions and property.

Proposals under review include potential changes to how wealth can be passed on before death to reduce inheritance tax liabilities. 

Advisers are urged to focus on the Consumer Duty challenge posed by the inclusion of unused pension funds in estates.

From 6 April 2027, most unused pension funds and death benefits will be included in the value of an individual’s estate for IHT purposes.

Key is calling for advisers to focus on the later life lending advice obligation created by changes in IHT rules coming into effect in April 2027.

The measure will bring unused pension funds and death benefits into the scope of inheritance tax from April 2027.

The two models meet the Government’s revenue objectives while avoiding the risk of delays, confusion, and added pressure on bereaved families.

More than half (52%) of advisers say their clients will be impacted by the rule change.

The decision overturned a previous ruling that would have seen HMRC claim inheritance tax on properties placed in trust decades ago.

Two thirds of IFAs recommend clients increase the retirement income they take and three quarters re-evaluate the role of annuities.