Why Executors Should Not Go It Alone on Inheritance Tax

If you’ve been named as an executor in someone’s will, you may feel honoured but also overwhelmed. With recent changes announced in relation to inheritance tax (IHT) rules in the UK, the role of executor is becoming more complex and risky, especially when it comes to business or agricultural assets and pensions.

From April 2027, pension pots that were previously tax-free on death will now be included in the taxable estate. This means executors—not pension scheme administrators —will be responsible for reporting these assets to HMRC and ensuring any tax due is paid. That’s a significant shift, and one that could leave executors personally liable if mistakes are made.

Business owners and farmers are also affected. From April 2026, reliefs like Agricultural Property Relief (APR) and Business Relief (BR) will be capped. Estates with valuable business or agricultural assets could face unexpected tax bills, and without proper legal advice, executors may struggle to understand what qualifies for relief and what doesn’t.

It’s tempting to try and handle estate administration yourself to save money for the benefit of the estate. But this can be a false economy. Executors must deal with everything from valuing assets and reporting income to settling debts and distributing inheritances. If you miss a deadline, misreport a figure, or overlook a liability, you could be held personally responsible—even years later.

Legal professionals stay up to date with the latest tax rules and know how to navigate complex estates. They can help you avoid costly errors, ensure compliance with HMRC, and protect the estate’s value for beneficiaries. In many cases, the cost of legal advice is a fraction of what could be lost through penalties or mismanagement.

So, if you’re named as an executor, don’t go it alone. Speak to a solicitor before you begin administering the estate.  The rules are changing, and the risks are real. Seeking expert legal advice isn’t just about ticking boxes—it’s about safeguarding yourself and honouring the wishes of the person who trusted you with their estate.

Getting the right advice early on can save you time, stress and money – and ensure that you fulfil your legal duties with confidence and care. 

If you would like to discuss an estate with us, please get in touch with a member of the Private Client team who will be pleased to assist you.