As summer settles in, many are reviewing their financial plans and thinking ahead to secure their family’s future. With a sharp rise in intestacy cases and ongoing inheritance tax reforms reshaping the landscape, now is an ideal time to focus on clear and proactive estate planning.
In this July update, we explore the growing challenges of intestacy, the impact of inflation on inheritance tax liabilities, and how recent policy shifts are driving demand for expert advice. From cautionary tales of lost inheritances to potential changes in tax rules affecting global assets, our insights aim to help you navigate these complexities and protect your legacy with confidence.
Intestacy Cases Up 25% in Four Years
The number of individuals dying without a valid will is rising sharply, creating increased complexity for those involved in estate administration. In the 2023/24 financial year, 51,136 Grants of Letters of Administration were issued across England and Wales, the highest volume in five years, representing a 17.3% increase from the previous year and a 25% rise since 2020/21.
The recent data shows a clear upward trend:
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2020/21: 40,738 grants
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2021/22: 38,102 (6.5% decrease year on year)
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2022/23: 43,597 (14.4% increase year on year)
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2023/24: 51,136 (17.3% increase year on year)
In one recent intestacy case, two first cousins inherited an estate despite living on the same street and being unaware of each other’s existence or their family connection.
A high-profile example from recent months involved pop star Liam Payne, whose £24 million estate was reportedly left intestate following his death last year. Documents published earlier this year granted limited representation to Payne’s former partner and music industry lawyer until a general grant is issued. Under intestacy rules, Payne’s son is set to inherit the £24.3 million fortune.
Mother and Grandfather Guilty of Laundering Daughters’ £50,000 Inheritance
Two sisters were defrauded of a £50,000 inheritance left by their grandmother after their mother became resentful over receiving a smaller share.
Katherine Hill, 52, and her father, Gerald Hill, 93, were found guilty of fraud by abuse of position at Swansea Crown Court and ordered to repay the full amount.
The money had been left in trust to Gemma and Jessica Hill, aged 15 and 12 at the time of their grandmother Margaret Hill’s death in 2013. As part of the trust’s management, Katherine Hill moved the funds to a savings account and used the money for mortgage payments, utility bills, and personal spending, allowing her and her partner to live beyond their means.
Their actions came to light in 2018 when one of the daughters requested early access to the funds for a property purchase.
The judge described Hill’s actions as driven by jealousy, noting she was “so annoyed” her daughters received more than she did. Some of the funds were also used to pay her partner’s mortgage, which amounted to money laundering.
Katherine Hill was sentenced to 30 months in prison and ordered to release equity from her home to repay the stolen funds. Gerald Hill received a 12-month sentence, suspended for 18 months. If either fails to pay, they face jail time without clearing the debt.
Chancellor May Rethink Global IHT Plan Amid Wealth Exodus
Reports suggest the Chancellor may reconsider plans to apply inheritance tax (IHT) to the global assets of non-domiciled individuals, following concerns that the reforms are prompting an exodus of wealthy residents.
Since the abolition of non-dom status in April, new rules propose a 40% IHT charge on global assets, a move critics say is out of step with international norms. There is growing evidence that the changes are driving high-net-worth individuals to relocate, with up to 40% reportedly considering leaving the UK for more favourable tax regimes.
Other countries, such as Italy, offer alternatives like fixed annual fees to shield overseas assets from taxation, making them more attractive to global wealth holders.
The Centre for Economics and Business Research (CEBR) has warned that if just 25% of non-doms leave, the policy could yield no additional revenue. A third leaving could cost the Treasury 700 million pounds in the first year. However, the Office for Budget Responsibility has cautioned that such forecasts are highly uncertain due to the mobility and unpredictability of the affected group.
A Treasury spokesperson maintained that the UK remains an attractive destination, noting competitive capital gains tax rates and a simpler, fairer residence-based regime. The government has committed to ongoing engagement with stakeholders to ensure the system remains internationally competitive while encouraging talent and investment.
IHT Reforms Spark Rise in Estate Planning Demand
Inheritance tax (IHT) changes are driving increased demand for tax and estate planning advice, with six in ten professional advisors reporting a rise in client requests. Nine in ten believe estate and tax planning will grow even more important following the IHT reforms, and 65% expect charitable tax incentives to become increasingly relevant to their clients.
A recent report by a legacy awareness fundraiser found that while only 15% of professionals expected a ‘discernible’ impact from IHT changes, 79% anticipated greater demand, and many are already seeing increases in estate and IHT planning (60%) and tax planning (56%).
The Autumn Budget 2024 froze the IHT thresholds until 2030 and removed the pension wealth exemption from IHT, effective from April 2027. The Office for Budget Responsibility estimates that the proportion of estates liable for IHT will nearly double by 2030.
With charitable tax incentives gaining importance, 65% of advisors highlighted their growing role. The proportion of estates leaving legacies has risen from 17% in 2016 to 21% in 2024, and up to two in five people say they would be willing to leave a charitable gift in their will.
Experts note that the IHT changes are prompting a reassessment of estate planning strategies, creating a growing need for tailored advice that aligns financial goals with personal values. Charitable giving is seen as a valuable planning tool and a timely reason for advisors to revisit legacy plans with clients.
Professional advisors play a key role in encouraging charitable giving, with over two-thirds of solicitors and Will-writers now proactively discussing this option with clients, a rise from 72% in 2023. Tax incentives remain the primary reason advisors bring up legacy giving, with 92% of solicitors and Will-writers and 86% of financial advisors advising clients about charitable tax benefits.
There is also a noticeable increase in clients seeking early estate planning advice. Many choose to leave legacies to causes they care about, with tax breaks providing additional motivation. As more estates face IHT liability, charitable giving is becoming a central part of estate planning discussions.
Inflation Drives More Estates into IHT Scope
IHT receipts for April to May 2025 reached £1.5 billion, an increase of £98 million compared to the same period in 2024. Recent Office for National Statistics (ONS) data show that UK annual house price inflation slowed in April, dropping from 7.0% in the 12 months to March to 3.5% in the 12 months to April 2025, marking the first slowdown since December 2023.
Despite this, average house prices in England (£286,000), Wales (£210,000), Scotland (£191,000), and Northern Ireland (£185,000) remain higher than 12 months ago.
With property values still elevated and nil-rate bands frozen until 2030, more estates are unintentionally becoming liable for IHT. Many families are caught off guard, especially where no prior planning has taken place.
Future legislated changes, including tightening business and agricultural reliefs and including unused pensions in estates from April 2027, mean this upward trend is unlikely to reverse. Lifetime gifting remains a highly effective tool, but must be balanced carefully against future financial needs. Trusts can also provide a way to reduce estate value while retaining some control over how the funds are used, depending on the type of trust.
Unspent assets in Defined Contribution pensions are creating planning challenges for those passing on wealth. Lifetime gifting is becoming increasingly popular; however, this area may face future government scrutiny to increase tax revenues.
Popular strategies include making regular gifts under the ‘normal expenditure out of surplus income’ exemption or initiating longer-term gifting plans to start the seven-year clock on larger gifts. However, there is speculation that the government could overhaul gifting rules, possibly extending the seven-year period to ten years, which would complicate tax-efficient wealth transfer.
Even modest estates can face significant tax burdens, with capital gains tax (CGT) often overlooked. Gifting assets during one’s lifetime may reduce IHT exposure, but can trigger CGT, followed by potential IHT later if not carefully managed. Strategic planning is therefore essential. Certain trusts or business structures may help defer or mitigate CGT but require careful setup and ongoing management.
To avoid double taxation, families should adopt a coordinated estate planning approach, considering gifting strategies, trusts, or succession planning tailored to changing tax laws.
One potential policy reversal under consideration is the rollback of plans to apply IHT on the global assets of non-domiciled individuals. An exodus of wealthy residents from the UK’s ‘punitive’ tax regime may force the government to review this policy. There is mounting evidence that the measure is driving wealthy individuals to leave, with the Centre for Economics and Business Research (CEBR) suggesting that if a quarter or more of taxpayers leave, the policy could undermine government revenue goals.
Plan Ahead This Summer: Protect Your Family’s Future
With intestacy cases rising and inheritance tax rules evolving, now is the time to take charge of your estate planning. At Clarke & Wright, we know these changes can feel overwhelming, but early, thoughtful action is key to avoiding unexpected complications. Whether you’re updating your will, considering tax-efficient strategies, or having essential conversations with loved ones, our expert team is here to guide you through every step. Let this summer be the season you secure peace of mind and protect your legacy. Reach out to us today and start planning for what matters most.