As we move through 2026, now is a sensible time to review your estate planning arrangements and ensure they continue to reflect your personal circumstances, family succession objectives and recent legislative changes.

Why a mid-year review matters

Although estate planning is highly personal, the inheritance tax (“IHT”) thresholds remain unchanged. The nil rate band, transferable nil rate band, residence nil rate band and transferable residence nil rate band are frozen until 2030.

Many people have seen the value of their assets increase significantly since their estate planning documents were last reviewed, particularly where property is involved.

There are also important changes ahead in relation to the treatment of pensions for IHT purposes, with changes due to take effect from 6 April 2027.

Your 2026 estate planning checklist

1. Review your will

When reviewing your will, you should ask yourself the following questions:

• Does your will still reflect your current wishes?
• Are your executors still appropriate?
• Have there been changes in family circumstances?

2. Check your lasting powers of attorney (“LPAs”)

If you already have LPAs in place and registered with the Office of the Public Guardian, it is important to check that the attorneys appointed remain appropriate.

If you no longer wish to appoint a particular person as your attorney, you will need to make new LPAs. The value and importance of LPAs cannot be stressed enough. If you do not already have LPAs in place, we highly recommend that you look into this sooner rather than later.

This is because if there ever comes a time when you are unable to manage your financial affairs, or your own health and care, your appointed attorneys, being people you trust implicitly, will be able to take care of these matters on your behalf.

Without LPAs in place, you cannot simply rely on your next of kin to deal with your affairs when you are unable to do so yourself. Instead, a costly and lengthy court application will be needed to appoint a deputy to assist. It is important to note that a Deputy is chosen by the Court, and this may result in a Deputy being chosen who you would not ordinarily consider for the role.

3. Assess your inheritance tax exposure

Review current asset values, investments, business interests and pension arrangements.

It is important to keep in mind that from 6 April 2026, the values of any assets qualifying for business relief and/or agricultural relief are combined and capped at £2.5m at a rate of 100% relief from inheritance tax. Any value of business and/or agricultural property exceeding £2.5m will be subject to 50% relief from inheritance tax.

4. Review lifetime gifting opportunities

Consider whether annual exemptions or larger gifts could support your succession planning objectives, including the following:

• Annual exemption – making gifts of up to £3,000 per year can be done without the 7-year clock starting and consequently reducing your taxable threshold (nil rate band) on death. Additionally, if the previous year’s allowance of £3,000 has not been utilised, any remaining allowance can be transferred to the current year. As a result, gifts of up to £6,000 could potentially be made in the current year, or this value could be set against a larger gift;
• Small gift allowance of up to £250 is exempt;
• Gifts between spouses and civil partners, and registered charities are exempt;
• Wedding and civil partnership gifts are exempt up to certain limits; and
• Gifts made out of surplus income – any regular gifts made from income which are not needed to maintain a normal standard of living can be made and the 7-year rule does not apply.

5. Revisit trust structures

Review trustees, beneficiaries, assets held in the trust fund, including up-to-date valuations, compliance requirements with the Trust Registration Service, and ongoing suitability.

6. Consider pension death benefits

Review pension nominations and beneficiary designations ahead of the April 2027 legislative changes. If you have a pension arrangement, on your death, any unused defined contribution pension pots, such as SIPPs and workplace pensions, and lump sum death benefits will form part of your estate for IHT purposes.

7. Check business succession arrangements

Ensure shareholder agreements and articles of association remain current and effective.

8. Review digital assets

Consider online accounts, investments, cryptocurrency holdings and digital records.

9. Final thoughts

Estate planning should not be treated as a one-time event. Instead, it should be seen as a continual review process throughout your lifetime.

A mid-year review provides an opportunity to identify potential risks, adapt to legislative changes and ensure your arrangements continue to protect your assets for future generations.

If you would like to carry out a review of your estate planning, we’re here to help. Please get in touch with Lucy Martindale at LucyMartindale@schofieldsweeney.co.uk.

Full details of the private wealth and succession team can be found using the following link: https://www.schofieldsweeney.co.uk/team-search/?_sft_service=private-wealth-succession.