What does the Autumn Budget mean for your clients' inheritance and estate planning?

The Autumn Budget usually gives you plenty to talk through with clients, particularly if it’s delivered against a backdrop of rising energy prices and borrowing costs.

But for inheritance and estate planning, I’d start with a simpler question: does anything here affect the plans your clients already have in place?

There are three things I’d pick up on this time: a new restriction on certain debts linked to trusts, confirmation that the pension changes are going ahead in April 2027 and the pressure on household budgets, which matters for gifting more than people sometimes think.

A new restriction on trusts

One of the new measures changes how debts are treated when working out Inheritance Tax (IHT) on assets held in a trust.

At the moment, some debts can be deducted from the value of trust assets when calculating the IHT due.

The new rule is tightening up when some of these deductions are allowed, which could leave some trusts facing a higher IHT bill.

The full details will be in the 2026–27 Finance Bill, but the rule already applies to deaths and other chargeable events from 28 October 2026.

It’s some comfort that not every trust will be affected. A lot depends on the type of debt and how the trust is set up. Where it matters is trusts where a debt deduction was part of how the IHT figure was worked out in the first place.

If that planning was done several years ago, it may still work exactly as intended, but I’d check rather than assume.

Upcoming changes to pensions in April 2027

The pension changes due on 6 April 2027 are going ahead as planned. From then, most unused pension funds and pension death benefits will count towards the value of someone’s estate for IHT purposes.

Think about a client who deliberately left their pension untouched so it could pass on outside their estate. For them, this could be a big change. How much it matters depends on the size of the pension and what else is in the estate, but it’s a conversation I’d have now rather than waiting until the spring.

There’s also a small but practical tweak to how the tax on pensions gets paid.

We already knew personal representatives would be able to ask pension administrators to pay IHT directly to HMRC. Now a prospective personal representative, meaning someone who is due to take on the role, will be able to do the same, as long as certain conditions are met.

That should help get part of the estate’s IHT bill paid sooner, hopefully relieving an element of pressure for estates.

How pensions affect charitable gifts

The Budget also introduces more flexibility in how pension assets are counted when it comes to charitable giving.

Normally, if at least 10% of the relevant part of an estate is left to charity, the estate may qualify for a reduced IHT rate of 36% rather than 40%.

From April 2027, whoever is administering the estate will be able to choose how pension assets are allocated when working out whether an estate qualifies or not.

If I were an adviser, I’d check how that calculation sits alongside my client’s wishes, particularly where the amount being left to charity is close to the 10% threshold.

The wider economic picture

Not every issue in estate planning comes from a change in tax rules. The Budget has outlined some help with energy bills, but it won’t take away all pressure on household budgets.

Take a client who regularly puts money aside to give to their children or grandchildren. If their energy bills and other costs go up, they may need to rethink how much they can afford to give away while keeping enough back for their own future.

Property plays a part here, too. A client may have a lot of wealth tied up in their home or other properties, but the costs of keeping those going don’t stop just because cash is running low.

If gifting is part of their estate planning, stepping back and looking at the figures as a whole is a good place to start.

What should advisers be checking now?

I wouldn’t suggest that every client needs a full review because of this Budget. I’d start with the areas where the rules or the client’s circumstances may have changed.

For trusts, that means checking whether the new restriction on debt deductions affects them. For pensions, it means making sure clients understand what’s coming in April 2027.

I’d also look at what the changes mean once the estate is actually being dealt with. Would there be enough cash to pay the Inheritance Tax bill? Would the executors need to sell property, and how long might that take?

If there’s enough cash, a new plan might not be needed. If there isn’t, paying IHT by instalments or a grant on credit may well do the job, and I’d look to those alongside borrowing from a probate lender such as Provira.

As for the Budget itself, I’d treat it like any other set of new measures.

Work out what’s changed, who it affects and whether your client’s existing arrangements still make sense. For plenty of clients, they will. Where they don’t, and the problem is liquidity rather than the value of the estate, that’s where a Probate Loan might be worth a look.

It won’t be right for every situation, but if you’re facing a case where you’re not sure, we’d be happy to talk it through.

Simply book a call in with our team today.

About Provira

Provira is the UK’s most established provider of inheritance and estate advances, trusted by hundreds of financial advisers and brokers. We’ve supported thousands of families, advancing £20,000 to over £1 million to help cover IHT, legal fees and personal needs – quickly, securely, and without personal guarantees or property charges.

We work closely with introducers and can provide everything from referral copy to co-branded materials. All you need to do is make the introduction – we’ll take it from there.