By Susie Roberts, Partner and Head of Wills and Estate Planning, McHale & Co

My youngest son has just turned 15. My older son is at university, and my 22-year-old has graduated and is working out what comes next. My parents are in their eighties. Meanwhile, my husband and I are Generation X, the “sandwich generation”: supporting the generation below us while helping the generation above, while thinking about our own future.

It is a reminder that estate planning is rarely about one person in isolation. Decisions about retirement, pensions, care, gifts and inheritance can affect several generations at once.

So, when I read about the changes ahead, I see them through two lenses: as a solicitor advising families, and as someone whose own family spans those different stages of life.

My parents’ generation

For parents in their eighties, estate planning can involve balancing several wishes: having enough money to enjoy life, keeping options open for future needs, and helping children or grandchildren.

From 6 April 2027, most unused pension funds and pension death benefits will count towards an estate for Inheritance Tax. This is already law, and the Budget has not reversed it.

That matters because a family’s understanding of their likely tax position may be based on rules that are about to change.

It does not mean every pension will produce a tax bill. Allowances, exemptions, the type of benefit and who receives it all matter. Qualifying death-in-service benefits and certain dependants’ pensions are excluded. (gov.uk⁠)

For families like mine, the sensible starting point is to look at the whole picture, including pensions.

And what about paying for care?

With parents in their eighties, care funding is a consideration.

The government plans to introduce a National Care Service providing free personal care for older people in England. This would include help with everyday activities such as washing, eating and using the toilet.

But this is a future reform, planned for introduction in phases in the next Parliament. It does not change what families pay today. Care-home accommodation and food would remain subject to means-tested charges.

The government intends to help fund the service through savings from changes to the State Pension triple lock from April 2030. The Casey Commission is due to report in summer 2027 on how the new care arrangements should work. (gov.uk⁠)

For families like mine, possible care costs need to sit alongside retirement, gifts and inheritance in the planning conversation. We cannot assume those costs will disappear.

Our generation: retirement and inheritance are connected

In our fifties, retirement planning is becoming more relevant, while our children are at very different stages of becoming independent.

I have seen with clients that there can be a temptation to approach Inheritance Tax planning as a question of how much to give away and when. But our own future needs have to be part of that conversation.

A pension is there to support retirement. Withdrawing money or making gifts can have consequences for income, other taxes and long-term security.

My professional view is that legal and financial advice should work together. A plan needs to make sense during your lifetime as well as after your death.

Our children’s generation: different ages, different needs

With a university student, a graduate and a 15-year-old, I am reminded daily that children do not all need the same support at the same time.

That is relevant to wills and estate planning too. A plan made when children were small will need another look as they move into adulthood.

Should an inheritance pass outright, or might a trust be appropriate? Does the will still reflect the family’s circumstances?

Pension beneficiary nominations should also be reviewed alongside the will. A will does not usually determine who receives discretionary pension death benefits, so the two need to be considered together.

The family member dealing with the paperwork

There is another side to these changes: someone will eventually have to put the plan into practice.

From April 2027, personal representatives – the executors or administrators dealing with an estate – will be responsible for reporting and paying the Inheritance Tax due on pensions within the new rules. (gov.uk⁠)

That means gathering pension information alongside details of property, savings and other assets.

The Budget proposed further help with direct payment from pension schemes, including arrangements for prospective personal representatives where there is no will or named executor, subject to conditions. These additional measures still need to pass into law. (gov.uk⁠)

As a solicitor, I see the importance of workable procedures. As a daughter and parent, I think about the person trying to navigate them while grieving.

Keeping clear records is one practical way we can make that task easier for the people we leave behind.

A new digital system is also coming

HMRC plans to replace its paper-based Inheritance Tax process with a digital service in the 2027/28 tax year. (gov.uk⁠)

That could improve the experience for families and advisers. However, this is not a confirmed launch on 6 April 2027, when the pension rules begin.

If the start dates differ, there may be an interim reporting process before the digital service arrives. Clear guidance and a well-managed transition will matter.

Where would I start?

Whatever your family circumstances are, I would start with a conversation and some organised information:

• Check that wills still reflect the family’s circumstances.
• Bring pension details and beneficiary nominations into the review.
• Consider retirement income and possible care costs before making gifts.
• Think about the different support each generation may need.
• Make sure executors know where to find important records.
• Review the likely tax position under the April 2027 rules.

 

Having three generations to think about can make it difficult to find time for your own planning. There is always a birthday, a university deadline or something else needing attention.

But those everyday family responsibilities are exactly why planning matters. It gives us a chance to make considered decisions and make things easier for the people we care about.

At McHale & Co, our Wills and Estate Planning team can help you put a plan in place that reflects your family, your responsibilities and your future.

 

Information checked on 31 October 2026. Some measures remain subject to legislation, and further guidance and details of the proposed care reforms are expected.