July brings the biggest proposed reform to family law in a generation, and for many of the families we advise, it raises questions worth answering now rather than later. The government’s cohabitation consultation, a rise in probate fees taking effect this month, and a run of significant court rulings all point in the same direction: the right moment to get things in order is rarely as far away as it feels.

This month covers the government’s cohabitation consultation and what it actually means for your will, research showing that delayed planning could cost affluent families £12.3 billion in preventable tax, and the industry’s growing concerns about HMRC’s pension IHT framework. We also look at a 75% rise in probate fees arriving this month, three significant court cases including a six-year prison sentence for power of attorney abuse, and some history of wills that raised eyebrows.

July In Numbers

• 3.5 million – cohabiting couples in the UK affected by the proposed family law reforms
• £12.3 billion – preventable IHT that affluent families could avoid by starting estate planning at 50 rather than 70
• £526 – new probate application fee from 13 July, up 75% from £300
• 76% – proportion of UK renters without a will
• 20% – proportion of millionaires who may be underestimating their own IHT liability

Reader Question

Every month, we pick one question submitted by a reader. If you have something you would like us to cover, send it to info@clarkewright.co.uk, and it may feature next month.

“My wife and I have both made wills, so if one of us became seriously ill the other would be in charge anyway, wouldn’t they? A friend mentioned we should also have a power of attorney, but I’m not sure why we’d need both.”
Robert, Warrington

Our Answer

Thank you, Robert, and it is a very common assumption – and an understandable one. If you have already taken the time to make wills, it is natural to feel that the bases are covered. The distinction, though, is an important one.

A will only takes effect when you die. It says nothing about what happens while you are alive but unable to make decisions for yourself. Without a lasting power of attorney, your wife would have no automatic legal authority to manage your finances or make decisions about your care, even after decades of marriage.

Without one, your family would need to apply to the Court of Protection for a deputyship order: a process that takes months, costs considerably more, and gives you no say over who is appointed.

The right time to put an LPA in place is before it is needed. Once someone has lost mental capacity, it is too late to make one. We would be glad to help.

Living Together but Not Married? Here Is What Could Change

On 4 June, the government launched a consultation described as proposing “some of the biggest reforms to family law in decades.” It covers three areas: financial remedies on divorce, financial provision for cohabitants on separation, and, most relevant to estate planning, inheritance rights on death.

The central proposal is that a qualifying cohabitant would receive automatic inheritance rights upon their partner’s death intestate, on the same basis as a spouse. To qualify: at least three years of cohabitation together, or a child together. The government is also consulting on a competing Law Commission suggestion for a five-year qualifying period. A two-year window would apply for financial claims after separation, and couples could opt out by mutual agreement. The consultation closes 14 August 2026. Legislation is unlikely before 2028.

The scale of the need is not in doubt. Research cited in the consultation found that 68% of cohabiting couples do not understand what happens to an estate when someone dies without a will, and 25% incorrectly believe their estate passes automatically to their partner. It does not, and it will not until legislation passes.

What The Reforms Do Not Do

Legal practitioners have been consistent on one point: these reforms do not replace the need for a will. They create a false sense of security, and a default legal framework applies the same rules to every family. For anyone with a blended family, children from a previous relationship, or assets held in more than one name, those defaults will frequently produce the wrong outcome.

There is also a question the consultation does not yet answer: whether the inheritance tax exemption that applies between spouses would extend to qualifying cohabitants. At present, transfers between cohabiting partners are taxable regardless of the length of the relationship. That position is not proposed to change.

If you are cohabiting without a will, a consultation closing in August – and an unlikely prospect of legislation before 2028 – is not a reason to wait.

When Living Together Is Not Enough: The Chris Liu Ruling

Readers of last month’s newsletter will remember the ongoing claim by the partner of fashion designer Chris Liu, whose £1 million estate was the subject of an Inheritance Act application. The High Court has now ruled, and the claim failed.

Tibor Matyas argued he and Liu had lived together as a married couple for two years before Liu’s death in 2017. The court found the evidence inconsistent with that: Liu had described the relationship to family and solicitors as a business connection, described himself as “single” in will instructions made during the relevant period, and held property in his sole name. The judge’s conclusion was direct: “My assessment of the evidence overall is that Chris’ family mattered to him more than Mr Matyas did.”

Matyas had already received a £470,000 flat as jointly owned property and a quarter share of a further London property. The court found him financially capable of self-support.

The case is worth noting alongside the cohabitation consultation. Under the proposed reforms, eligibility will still need to be proved, and courts will examine exactly the same evidence: how the couple presented themselves, how assets were arranged, what each party’s financial position was. A qualifying period does not make qualification automatic.

£12.3 Billion in Preventable Tax: Start Planning Early

Research by the Centre for Economics and Business Research finds that families in the top wealth decile who begin estate planning at 50 rather than 70 could pass an average of £397,000 more to the next generation. Across that cohort, the aggregate difference amounts to £12.3 billion, which would rise under the post-April 2027 pension rules.

The engagement gap behind that figure is striking. Respondents believed planning should begin at around age 44. Advisers report their typical client engages at 61. Nearly seven in ten advisers said they had witnessed preventable tax or family conflict resulting from that delay. The tools that close the gap, including gifting, trusts, and annual exemptions, all depend on time. The later planning begins, the fewer options remain.

What Does a Comfortable Retirement Actually Cost?

Research published by Quilter, based on the updated Pensions UK Retirement Living Standards, finds that a single person now needs a pension pot of £691,000 to achieve a comfortable retirement, defined as spending £45,400 a year. A couple needs £778,000 between them.

Those are also the pots that will, from April 2027, form part of a taxable estate. For families who have deliberately built pension savings as a tax-efficient vehicle for passing wealth to the next generation, the picture has changed materially. A pot large enough for a comfortable retirement is also, under the new rules, large enough to generate a significant IHT liability.

The Pension IHT Framework Has Practical Problems

The April 2027 pension IHT changes were confirmed in law by the Finance Act 2026, which received Royal Assent in March. The direction is settled. What remains unsettled is how the administration will work.

The Society of Pension Professionals has formally criticised HMRC’s proposed framework as placing “unrealistic obligations on pension schemes” that are “simply not practical in many cases.” Specific concerns include deadlines that are too tight for identity verification and a requirement that pension administrators determine IHT exemptions involving complex residency rules. The SPP argues this work should fall to executors, who already assess the overall estate.

For families approaching retirement or reviewing pension nominations, the practical picture is another reason to seek advice now rather than in early 2027. Get in touch.

Probate Fees Rise on 13 July

The government has confirmed that probate application fees will rise to £526, effective 13 July 2026, up from £300. That is a 75% increase. Where timing allows, submitting an application before that date is a straightforward consideration. The Help with Fees remissions scheme remains available for those unable to afford the new rate.

One in Five Millionaires Underestimate Their Estates

A survey of 2,000 UK homeowners aged 45 and over found that one in five estate holders are underestimating both their wealth and their IHT liability. 70% of those with estates above the £325,000 nil-rate band have not calculated their potential liability. 13% have estates above £1 million, yet only 0.5% describe themselves as “very wealthy.”

IHT receipts reached £9 billion in 2025/26 and are projected to hit £15 billion by 2030/31. Rising property values have moved families across IHT thresholds they never expected to cross, and many have not updated their planning to match. If you would like to review your position, we are here to help.

From the Courts: Three Cases Worth Knowing

1. Six Years for Power of Attorney Abuse

Gary and Diane Mansell were sentenced to six years in prison at Liverpool Crown Court after making 103 unauthorised transfers from Gary’s elderly parents’ accounts, selling the family home and keeping the proceeds, and spending over £59,000 in eleven months on cosmetic dental work, a BMW, and holidays to Jamaica. By the time Gary’s mother died, she had been moved into a converted garage with 28 pence. His father, now 86, is the surviving victim. The court imposed a confiscation order of £289,773.

A lasting power of attorney is one of the most powerful legal documents a person can grant. Its value depends entirely on the integrity of the person who holds it. Independent oversight is not a formality. Talk to us about putting proper protections in place.

2. Braithwaite v Slade: When Trust Wording Is Everything

The High Court ruled that a cottage on Sir Benjamin Slade’s Somerset estate, valued at £585,000, forms part of his ex-wife’s £1.2 million income trust and may be directed for sale. Sir Benjamin argued the trust was intended only to provide Lady Slade with lifetime accommodation. The court found that the trust’s language provided for “income from the entirety of the trust fund,” which settled the matter. Trust wording drafted decades ago determines rights today. If yours has not been reviewed since your family circumstances changed, it is worth checking.

3. Matyas v Daniel: What Courts Require to Recognise a Relationship

Covered above in the context of the cohabitation consultation. The full case note, including citation [2026] EWHC 1368 (Ch), can be found here.

The Renters’ Will Gap

A survey by MoneySuperMarket found that only 24% of renters have a will, compared to 45% of mortgage holders. Renters are statistically more likely to be in unmarried partnerships. Without a will and without a marriage, a partner who dies today leaves their cohabitant with no automatic entitlement to the estate, however long they have lived together. One in seven renters without a will said they had no plans to make one.

The proposed cohabitation reforms would change this, but not until 2028 at the earliest. In the meantime, a will remains the only reliable protection. Contact us to get started.

When No One Is in Charge: What History Tells Us About Planning for Incapacity

The need for someone to step in when a person can no longer manage their own affairs is not a modern problem. What has changed is how much control you have over who that person is.

Britney Spears. Perhaps the most famous modern example. For thirteen years, Spears earned millions as a global entertainer while having no legal control over her own finances, medical decisions, or right to have children. Her father held the authority. The case prompted significant reform discussions across the United States and introduced the concept of legal incapacity to a generation who had never previously thought about it.

The King’s Ward. Before any formal legal mechanism existed, the Crown claimed the right to manage the estates of those deemed incapable, a doctrine known as parens patriae, literally “parent of the nation.” In practice this meant the Court of Chancery: notoriously slow, eye-wateringly expensive, and entirely indifferent to what the individual might have wanted. Dickens was not exaggerating.

The Socialite and Her Son. Brooke Astor, one of New York’s most celebrated philanthropists, spent her final years in conditions her own son’s lawyers would later describe as neglect. He held power of attorney. She was 104, living in a Fifth Avenue apartment with a leaking roof and inadequate heating, while her estate funded a rather more comfortable life elsewhere. He was later convicted of fraud.

In each case, the problem was not incapacity itself. It was the absence of a trusted, properly overseen arrangement made in advance. A lasting power of attorney does not just protect you from those who might take advantage. It protects you from a system that, left to its own devices, has never been particularly quick or kind.

Your July Checklist

Good estate planning rarely fails because people do not care. It fails because the moment never seems quite right. Before July gets away from you:

• Probate – any estate approaching the probate stage should consider an application before 13 July to avoid the fee increase to £526
• Cohabitation and your will – the proposed reforms will not protect you until 2028 at the earliest; if you are cohabiting without a will, the time to act is now
• Pension nominations – with the 2027 framework still evolving and the SPP raising practical concerns, nominations made on the assumption pensions sit outside the estate may need revisiting
• Estate value – if you have not calculated your IHT liability recently, property values alone may have changed the picture considerably
• Power of attorney – if one is in place, is there independent oversight? The Mansell case is a reminder of what can happen when there is not

If anything here has prompted a question about your own situation, we would be glad to hear from you. Have a question for next month’s newsletter? Send it our way. We answer one reader question every issue.