January is a natural time to reset, reflect and look ahead. As the new year begins, many people take the opportunity to review their finances, family arrangements and longer-term plans, particularly in light of recent changes to tax, property and inheritance rules.

In this month’s newsletter, we look at key developments affecting estate planning, family businesses and later-life finances, alongside recent court cases that underline the importance of clear documentation and regular reviews. Whether you are making plans for the year ahead or reassessing existing arrangements, understanding these issues early can help you move forward with confidence.

Government raises inheritance tax relief limits for farms and family businesses

The government has announced an increase to the inheritance tax relief thresholds for agricultural and business property, easing concerns for many farming families and business owners.

From April, Agricultural Property Relief and Business Property Relief will rise to £2.5m per person. This means spouses or civil partners can pass on up to £5m in qualifying farm or business assets between them before inheritance tax applies.

The change follows widespread concern that earlier reforms could place significant pressure on family farms and long-established businesses. Fewer estates are now expected to be affected, with most families forecast to pay no additional inheritance tax and many seeing potential savings of hundreds of thousands of pounds.

While the announcement is welcome, it does not remove all complexity. Some families may still face challenges with succession planning, particularly where assets exceed the new limits or business structures are complex.

For those affected, this is a timely reminder to review wills, ownership arrangements and succession plans to ensure reliefs are used effectively, and family intentions are protected for the next generation.

£5m inheritance claim against £38m estate tests limits of family provision rules

A High Court case involving a claim against a £38m estate is highlighting how difficult it can be to challenge a will, particularly where the claimant is not a biological child or named beneficiary.

The claim has been brought by Lonan O’Herlihy, who is seeking a £5m share of the estate of his mother’s former partner. Although the estate was left mainly to the deceased’s widow, Mr O’Herlihy argues that he was treated as a child of the family and financially supported during his upbringing.

The widow, who is also the executor, is opposing the claim, arguing that it was brought too late and goes far beyond what the law considers a reasonable financial provision.

The case raises important questions about expectations formed during childhood, informal family arrangements and how far courts will go to uphold a person’s wishes as set out in their will.

For families, it is a reminder that unclear arrangements and informal promises can lead to stressful and costly disputes. Clear wills, regular reviews and open conversations can help reduce the risk of conflict later on.

Budget changes prompt more people to review their wills

Recent budget announcements have encouraged many households to review their long-term financial plans, with new research showing a growing number of people are making or updating their wills.

Around one in five adults surveyed said they plan to take action, with the most significant increase among people in their late 20s to mid-40s. This reflects a broader shift in attitudes, with estate planning increasingly seen as relevant at all life stages.

Changes to tax, pensions and household finances can all have long-term consequences. For many families, a will is the foundation of good planning, helping ensure assets are passed on as intended and reducing uncertainty for loved ones.

Significant financial events, such as government budgets, are helpful prompts to assess whether existing arrangements still reflect current priorities and future plans.

New law confirms digital assets count as personal property

Digital assets such as cryptocurrency and NFTs are now formally recognised as personal property under UK law, following legislation passed in December.

Previously, digital assets sat in a legal grey area, creating uncertainty around inheritance, bankruptcy and fraud. The new law confirms they can be owned, protected and transferred in much the same way as traditional assets.

This means digital assets can be more clearly included in wills and estate planning, passed on to beneficiaries and taken into account if financial difficulties arise. It also strengthens protections where assets are lost or stolen.

As more wealth is held online, the change underscores the importance of clearly recording digital assets and ensuring executors or loved ones can access them when needed.

Estate dispute highlights risks of leaving wills unchanged

A High Court case involving a daughter excluded from her father’s £1.75m estate is drawing attention to the importance of keeping wills up to date as family circumstances change.

Emma McDaniel is seeking financial provision from her late father’s estate after being left out of his will, which passed entirely to his widow. Although father and daughter were estranged for many years, they rebuilt a close relationship several years before he died in 2022. Despite this, the will, made in 2014, was never revised.

The court is now being asked to consider whether financial provision should be made despite the wording of the will. The case has been compared with a 2017 Supreme Court ruling that also involved an adult child of limited means challenging their exclusion from a parent’s will, and highlights how courts may look beyond a will to consider family relationships, financial need and overall fairness.

McDaniel argues that financial support from the estate would help her provide suitable housing for her disabled children and manage existing debts. The widow, however, maintains that the will reflects the deceased’s wishes and should be followed.

For families, it is a reminder that wills should be reviewed regularly, particularly after reconciliation, remarriage or other significant life changes, to help avoid uncertainty and disputes later on.

Later life lending surges as over-55 borrowing grows

Borrowing among homeowners aged 55 and over continues to rise, with later-life lending increasing by almost 25% compared with the same period last year.

Recent UK Finance figures show that almost 40,000 new loans were taken out by older borrowers in the third quarter of 2025 alone, with £6.5bn advanced in total. This growth suggests that more people are choosing to borrow, refinance or release funds later in life.

Rising living costs, pension pressures and later access to the housing market mean many people are now borrowing, refinancing or releasing funds at an older age than previous generations.

Products designed specifically for later life, including retirement interest-only mortgages, are also becoming more common. These options can allow homeowners to access funds or manage repayments in ways that better suit their circumstances.

With ongoing tax pressures and higher outgoings for some older homeowners, demand for later-life lending is expected to continue to grow, particularly among those who are asset-rich but cash-poor and want to stay in their home.

Planning Ahead for the Year to Come

As the year gets underway, now is a good time to review your affairs and check that your plans still reflect your circumstances, priorities and wishes. Recent legal developments and government changes show how quickly things can evolve, and why regular reviews are so critical.

Taking time to plan ahead can help protect your family, reduce uncertainty and provide reassurance for the future. If you would like to discuss any of the topics covered in this month’s newsletter, or would like support reviewing your wills, estate plans or financial arrangements, the team at Clarke and Wright would be pleased to help.

N.B. This document is for information only and does not constitute legal or tax advice.