Getting Your House In Order: A Private Client Checklist For September

As summer draws to a close and a new season begins, September offers a natural opportunity to get your personal and financial affairs in order.

Reviewing your estate planning and wider arrangements may sound like a significant undertaking, but it does not necessarily require a complete overhaul. With that in mind, our private client checklist considers five key areas to review this autumn.

Your pension arrangements

Ahead of the inheritance tax (IHT) changes for pensions due to take effect from 6 April 2027, now is a particularly sensible time to review your pension arrangements, as from that date unused pension funds and certain death benefits may form part of your taxable estate.

Start by preparing an up-to-date list of your pension schemes as this can help you build a clearer picture and, just as importantly, make it easier for your family or advisers to locate the relevant information if needed.

You may also wish to take financial advice on whether drawing benefits or consolidating pension pots would be appropriate, bearing in mind that older policies can sometimes contain valuable benefits or guarantees that may be lost on transfer.

It is also important to check that any expression of wish or nomination forms remain up to date, reflect your current intentions and will be IHT efficient from 6 April 2027.

For further practical tips, see Relevant unused pension funds and pension death benefits will become subject to inheritance tax from 6 April 2027.

Keep track of regular gifts

Regular gifts made from surplus income may be exempt from IHT if they form part of a pattern of giving, are made from income, and do not affect your ordinary and comfortable standard of living. The exemption can be particularly useful for those who make regular contributions towards a child’s or grandchild’s living costs or education.

Record keeping is vital – the exemption is only tested by HMRC after death, so it is important to keep an annual schedule of your income, expenditure and gifts, together with a brief note of your intention to make those gifts regularly.

For further guidance, see Unlocking the power of gifts out of surplus income.

Education costs

With school and university fees placing increasing pressure on family finances, grandparents and other relatives may wish to help with education costs.

Lifetime gifts can have IHT consequences if not survived by seven years, but depending on the circumstances, exemptions may be available and the appropriate approach will depend on matters such as the amount being contributed, the age of the child and the degree of control or flexibility the family wishes to retain.

For families seeking a longer-term arrangement, an education trust may provide an IHT efficient structure through which funds can be managed and applied for a child’s benefit over several years.

For an introduction to the available options, see School fees and education trusts.

Lasting Powers of Attorneys and Wills

In some respects, Lasting Powers of Attorneys (LPAs) are more important than a Will. While a Will governs what happens to your assets after your death, LPAs are there to ensure your assets and your health can be managed for your benefit during your lifetime, if and when you are no longer able to make such decisions for yourself.

If you already have these in place, consider whether your appointed attorneys are still willing, able and suitable. Perhaps you last made LPAs when your children were young, but are they now of an age where they could, and should, act as your attorneys?

A Will should evolve as your life does. Changes in your family circumstances and asset ownership may mean that your Will no longer reflects your circumstances, making it important to review whether your choice of executors, trustees and guardians remains appropriate and whether its provisions strike the right balance between protection and flexibility for your beneficiaries.

Changes to legislation, like the revised IHT reliefs for agricultural property and business property also require Wills to be revisited.

Increasing international mobility makes it equally important to consider whether your Will and any overseas Wills work effectively alongside one another and cover the full extent of your estate.

Foreign property, changes in residence or domicile, and assets held through overseas structures may all introduce additional succession and tax considerations.

Make life easier for your loved ones

Estate planning is not only about having the right legal documents in place. A clear record of your affairs, starting with an assets and liabilities spreadsheet, can make administering your estate considerably easier for your executors.

Remember to include details of significant digital assets and online accounts, which are easily overlooked despite being an integral part of everyday life.

Where to start, and when

Many of these steps are straightforward, but the benefits of addressing them now can be significant. As autumn begins and routines settle after the summer break, it is an ideal opportunity to take proactive steps, rather than leaving this for another day.

With tax rules, succession planning considerations and family circumstances continually evolving, taking time to undertake a regular review can help ensure your affairs remain aligned with your objectives and that you are making the most of available planning opportunities. Addressing the points covered in this article can provide valuable peace of mind and help avoid unnecessary complications in the future.