Over 50s 'underprepared' for major inheritance tax changes, new survey finds

A national survey commissioned by UK law firm Brodies LLP has revealed that UK residents aged 50 and over are underprepared for the upcoming changes to inheritance tax (IHT), with only 26% fully understanding how the new rules will impact their wealth transfer plans.

The representative YouGov survey of 2,001 adults highlights concerning gaps in estate planning and family communication, raising alarms about the risks of inadequate succession strategies in the wake of the new IHT rules.

Key survey findings

lack of awareness – More than half (54%) of respondents are aware of upcoming IHT changes but do not fully understand their personal implications. A further 20% were completely unaware of the reforms;
limited family discussions – 58% of respondents have never discussed inheritance plans with family or beneficiaries, potentially leaving loved ones unprepared;
lack of formal planning – Less than half (41%) have a formal estate plan in place, and only 16% have sought professional advice on tax or succession planning;
fairness concerns and disputes – 28% worry about ensuring fairness among heirs, while 23% fear family disputes or relationship breakdowns due to inheritance issues;

The upcoming IHT reforms—set to be introduced in phases beginning in 2025—will significantly impact business and agricultural assets, pensions, and domicile status. One of the most notable changes is the reduction of Agricultural and Business Property Relief, meaning only the first £1 million of qualifying assets will be exempt from inheritance tax. The remainder will now face an effective 20% tax rate—a shift that could heavily impact business owners and farmers.

“These reforms demand urgent action from individuals and families to review succession plans,” said Mark Stewart, partner at Brodies LLP. “Too many people are unaware of the tax implications, and without early estate planning, they risk unnecessary financial loss and legal complications.”

The survey results show that while the majority (69%) believe it is important to discuss wealth and inheritance planning with family before death, the reality suggests these conversations are not happening.

The reluctance to seek advice is also evident—despite the complexity of new tax laws, only 16% have already consulted professionals, such as lawyers or wealth experts, and nearly half (47%) either prefer to manage it themselves or see no need for external expertise.

“Effective estate planning requires more than just good intentions,” continued Mark, “we encourage families to speak openly about inheritance, seek professional guidance, and structure wealth transfer effectively to avoid future disputes and tax inefficiencies.”

The full report can be viewed here.

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About the Survey