As 2025 draws to a close, the landscape for estate planners, will-writers, financial advisers and mortgage brokers has seen several important developments. From landmark reform proposals to key tax and legislative shifts — some already law, others still working their way through consultation and legislation — the implications for clients and advisers are significant.

Landmark Reform: Law Commission of England and Wales Review of the Wills Act 1837

One of the biggest stories of the year has been the final report of the Law Commission, published in May 2025, which proposes a comprehensive overhaul of the nearly two-century-old Wills Act 1837.

Key proposed changes include:

• Legal recognition of electronic wills (e-wills) — allowing wills to be created, signed and stored digitally (under strict safeguards) rather than relying only on wet-ink, paper-based documents.
• The minimum age to make a valid will reduced to 16 years (with a provision for authorised wills for younger individuals in exceptional circumstances).
• The rule that marriage or civil partnership automatically revokes an existing will is to be scrapped — reflecting modern relationship patterns and helping to prevent unintended invalidations.
• Modernising and consolidating wills law into a revised, clearer statute, replacing old-fashioned language and reducing ambiguity.

For estate-planning professionals, this represents the biggest shake-up in wills law in decades — with the potential to make will-writing more flexible, accessible, and secure, particularly for clients who value convenience, mobility, or digital-first solutions.

Important caveat: these are recommendations only. As of now, the reforms have not yet become law.

Beyond law reform, 2025 has also seen further progress (and reinforcement) of recent announcements around taxation, inheritance rules and estate planning — many of which materially affect how advisers should guide clients.

Pension Pots to Be Included in Inheritance Tax (IHT) from April 2027

One of the most significant developments concerns the estate treatment of pension savings. Under current rules many pension pots — particularly unused funds or death benefits — fall outside the taxable estate. That is changing.

• The UK government has confirmed that from 6 April 2027, most unused pension funds and death benefits from registered pension schemes could be included in an individual’s estate for IHT purposes.
• The update in July 2025 clarified that personal representatives (executors) will be liable to report and pay any IHT due on pensions.
• “Death in service” benefits will remain outside the IHT net.

Implication for clients: Pensions can no longer automatically be considered “outside” the taxable estate. For people with substantial pension pots, this may push their estates over IHT thresholds — especially when combined with property, investments or other wealth.

Advisers should encourage clients to review their wills, LPAs and estate plans with their pension pots in mind — timely interventions (gifts, trusts, or restructuring) may make a significant difference.

Reform to Agricultural & Business Property Relief (APR / BPR) from 2026

Another relevant area that continues to evolve: reliefs for business or agricultural property. Under previous rules, such property often qualified for 100% IHT relief. Proposed changes will reduce the relief above certain thresholds.

• From 6 April 2026, only the first £1 million of qualifying business or agricultural property will receive 100% relief. Assets above this limit will qualify for only 50% relief — effectively leaving the excess subject to IHT (at an effective rate of ~20%).
• This change may particularly affect clients with family businesses, farms or larger trading assets.

Frozen IHT Thresholds Remain — Increasing Scope of IHT Risk

The basic and residence nil-rate bands remain the same: meaning that with rising property and asset valuations, more estates are likely to fall within IHT scope.

These frozen thresholds, combined with inclusion of pensions and tighter reliefs, mean that many estates previously thought safe may now be vulnerable — reinforcing the need for proactive estate planning.

What It Means for Estate Planners, Advisers & Mortgage Brokers — From a BTWC Perspective

As professionals trusted to advise clients and draft their crucial documents, 2025 has underscored why proactive engagement and regular review of estate plans is more important than ever. Specifically:

• Wills should be reviewed — sooner rather than later. Given upcoming changes (particularly pension inclusion and IHT relief reforms), clients with older wills may inadvertently expose their beneficiaries to unexpected tax liabilities. Reviewing and possibly re-drafting wills could be essential.
• Holistic estate planning increasingly necessary. With pensions, business interests, properties and investments all potentially affected — a siloed will or LPA based only on property/cash may no longer suffice. Advisers should take a holistic view of clients’ asset base.
• Important opportunities for lifetime planning and tax mitigation. For clients concerned about IHT — especially those with significant pensions or business assets — lifetime gifting, trusts or restructuring may need to be considered. Advisers should be ready to guide them sensitively and strategically.
• Education and client communication is key. As the rules grow more complex, many clients may not appreciate the risk. Advisers and brokers have a strong role to play in explaining implications, timing and options.

Reflections & Milestones for BTWC in 2025

At BTWC we value the trust financial advisers, mortgage brokers and estate-planning professionals place in us to handle their clients’ wills, LPAs and estate documentation.

In 2025, we welcomed the Law Commission’s review — recognising it as a potential milestone that could reshape how wills are drafted and stored in the future. We maintained our commitment to staying ahead of legislative and tax changes, ensuring clients’ wills and LPAs are updated, robust and future-proof. The year, we have supported many advisers and their clients through complex estate planning scenarios — particularly where pension pots, business assets or property are involved — and helped them navigate shifting IHT risk.

Looking Ahead — What to Watch in 2026

• Will the Law Commission’s recommendations become law? If so, when — and what transitional arrangements will apply?
• How will the inclusion of pensions in IHT impact estate administration in practice? Will we see delays in probate as pension schemes respond to new reporting and payment requirements?
• What further reforms — from pensions, trusts or property tax landscape — might be proposed by the government?
• How can advisers use trusts, lifetime gifts or other planning tools to mitigate increased IHT exposure for clients?

As we look ahead we remain committed to working collaboratively with you, to provide sound drafting, informed advice and clarity for end clients at a time of greater uncertainty.

We sincerely appreciate your continued trust in BTWC throughout 2025 — and look forward to continuing to support you and your clients into 2026 and beyond.