Every adviser knows legislation changes. The greater risk is assuming clients’ planning changes with it. It rarely does. Most financial plans are built around the legislation that existed at the time advice was given. The problem is that tax law moves far faster than clients do. The result?
Many perfectly sensible plans gradually become less effective – not because they were wrong, but because the world moved on.
Every major legislative change creates three groups of clients
Whenever tax rules change, clients tend to fall into one of three categories.
- Group One: those who are already well protected.
- Group Two: those who need relatively small adjustments to remain on track.
- Group Three: those who unknowingly become exposed because nobody has revisited their planning.
The challenge is that clients rarely know which group they’re in. In fact, Mattioli Woods research suggests many clients don’t fully understand the planning options available to them. While almost half of UK adults intend to leave an inheritance, almost two-thirds are unaware that investment bonds can play a role in inheritance planning when used alongside trusts.
Often, neither do their advisers until someone starts asking the right questions.
The 2027 pension changes are a perfect example
The proposed inclusion of defined contribution pensions within Inheritance Tax from April 2027 has understandably attracted significant attention. But the legislation itself isn’t the biggest issue. The bigger question is:
How many estate plans were built on the assumption that pensions would remain outside the estate?
For some clients, the answer may be “it changes very little.” For others, it fundamentally changes where assets should be held, how wealth should pass between generations and which planning strategies deserve another look. Our research also found that while 83% of people recognise the importance of having a Will, only 35% are aware of the proposed changes that could bring pensions into the scope of Inheritance Tax.
The legislation is simply the trigger. The review is where the value lies.
Advice has a shelf life
The best advice is never static. Families grow. Businesses are sold. Property values rise. Relationships change. Tax rules evolve. Every one of those events shortens the shelf life of advice that once made perfect sense.
Yet many clients mistake having a plan for having a current plan. Research found that 68% believe their Will is up to date, yet only 29% have reviewed it following major life events such as marriage, divorce or becoming grandparents.
The message is clear: confidence isn’t the same as currency. The best advisers don’t wait for clients to ask whether they should review their plans. They create reasons to have the conversation.
The opportunity for every professional adviser
Solicitors often see changing family circumstances first. Accountants spot shifting tax positions. Mortgage brokers regularly engage clients during major life events. Financial planners bring the long-term wealth strategy together.
Individually, each adviser sees part of the picture. Collectively, they can identify risks long before they become expensive problems.
That is where joined-up advice delivers its greatest value.
One question worth asking every client
Rather than asking: “Has anything changed?” Try asking: “If we were starting your planning from scratch today, would we build it the same way?”
It’s a simple question. But it reflects a powerful truth.
Sometimes the biggest risk isn’t the new legislation. It’s relying on advice designed for yesterday’s rules.
Could one conversation make a lasting difference?
If you have clients who are reviewing their estate plans, updating a will, considering business succession or looking to pass wealth to the next generation, we’d welcome the opportunity to work alongside you.
Our specialists regularly support accountants, solicitors and other professional advisers, providing joined-up financial planning that complements your legal and tax expertise while keeping you informed throughout.
Together, we can help clients preserve more of what they’ve worked so hard to build.
¹ UK Wealth Transfer and Tax Planning Report 2025: Two-thirds of people unaware of how bonds can help with inheritance and tax planning – LV=.
