It’s no secret that the current Labour government seeks to tax assets, rather than earnings, or benefits. That means your pension, savings, ISAs, shares and property are all likely to be taxed even more in future. Here’s the word;
New research from The Private Office (TPO) the UK’s largest independently owned Chartered Independent Financial Advice firm, reveals the widespread and costly consequences of inadequate estate planning across the UK. Drawing on government and industry data alongside TPO’s own survey of 2,126 UK adults, the research shows that most people know they should plan ahead — but most haven’t.
Most UK adults are underprepared
A study by the Money and Pensions Service found that 56% of UK adults lack a will, including 53% of those aged 50 to 64, an age group when the risk of serious illness rises sharply and is sometimes referred to as “Sniper’s Alley”. Without a will, the law decides who inherits, not the person who died — and the rules rarely match what people actually intended.
The gap extends to digital assets. A survey by consumer group Which? found that 76% of people have made no plan for what happens to their digital assets when they die. With research from Finder estimating that 91% of UK adults now use some form of online or remote banking, families settling an estate are increasingly left chasing logins and account details at exactly the moment they are least equipped to do so.
The misconceptions around relationship status add a further layer of risk. A Ministry of Justice consultation found that 47% of people in England and Wales believe “common law marriage” gives legal protection after living together for a set period of time. It does not, and never has. With around 3.5 million couples now cohabiting outside marriage or a civil partnership, an unmarried partner has no automatic right to inherit anything from their partner’s estate under current intestacy rules — regardless of how long they lived together or how finances were shared.
What unpreparedness actually costs
The financial consequences of failing to plan are concrete. Registering a Lasting Power of Attorney (LPA) while a person has full mental capacity costs £92. If that moment passes and a family instead has to apply to the Court of Protection for deputyship, the cost rises to £400 — before accounting for the months the process can take, during which bills, care fees and property costs continue to accumulate. Over one million LPAs were registered with the Office of the Public Guardian in 2023 to 2024, a rise of more than 30% since 2019 to 2020, but the majority of people still haven’t made one.
Delays in settling estates are also increasing. The number of probate cases taking over a year to resolve has risen 518% in five years, from 377 in 2019 to 2,328 in 2024, as estates become more complex and more contested.
For cohabiting couples, the stakes are particularly high. The absence of a will could mean losing a home they have lived in for decades if it is not held on a joint tenancy basis. A recent government consultation, which closed on 14 August 2026, examined whether unmarried partners should gain automatic inheritance rights if their partner dies without a will. Even if that change comes, it remains some way off. For now, the only reliable protection is a will — and, ideally, a cohabitation agreement drawn up in advance.
Gifting remains the wish, if not the reality
TPO’s own survey of 2,126 UK adults, mostly aged 45 and over, found that 80.7% believe wealth should be passed on to the next generation during their lifetime rather than left to inheritance. Yet many hold back, primarily out of concern about their own future care costs and retirement security.
Among those who have not yet gifted, 39.7% still intend to. The research suggests that uncertainty about long-term care costs is the main barrier — not an unwillingness to give. Those who plan early and build a clear picture of their future financial needs are better placed to gift with confidence. A gift that is promised but never made leaves both generations in a difficult position: the older generation still holding the asset and its tax exposure, and the younger generation without the support they thought they could expect.
Changes ahead
From April 2027, unused pension funds will form part of an estate for inheritance tax purposes. This is likely to bring more families into the IHT net, subject some beneficiaries to income tax as well as IHT, and increase the burden on executors. Reviewing pension nominations and keeping clear records of all pensions held is no longer just good practice — it is something families will be grateful for.
Dean McSloy, Partner at The Private Office, said: “Talking about what happens when we die is never easy, and it’s understandable that people put it off. But from our experience, the biggest cost of not having these conversations is not only the financial cost, but the additional stress and uncertainty placed on the people we leave behind. When a family is already dealing with the loss of someone they love, having to untangle their financial affairs or discover that arrangements weren’t quite what they thought can make an incredibly difficult time even harder.*
“The good news is that getting your affairs in order doesn’t have to be complicated. A valid will, appropriate powers of attorney, clear records of your finances, and some thought about how and when you want to pass on your wealth can make a significant difference. It’s also important to look at these things as part of one overall plan, rather than as isolated decisions. Taking a little time now to understand what you have, what you want to happen, and what your family might need means you can make those decisions on your own terms, rather than leaving them to others at a much more difficult time.”
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