Estate planning has become more intricate due to the below key changes in 2025:
- Inheritance Tax (IHT) Thresholds: The nil-rate band remains at £325,000, and the residence nil-rate band at £175,000. However, with rising property values and frozen thresholds, more estates are becoming liable for IHT.
- Digital Assets: The proposed Property (Digital Assets etc.) Bill currently under consideration with the House of Lords, aims to recognize digital assets like cryptocurrencies and NFTs as personal property, emphasizing the need to include them in your estate plan.
- Pensions and IHT: From April 2027, unused pension funds may be included in the taxable estate, potentially impacting your beneficiaries.
Given these developments, it is time to review and update your estate plan to ensure it reflects your current wishes and the latest regulations. Reach us at: admin@therightwill.co.uk for any assistance.
