Intergenerational planning is rarely a single decision. It is a sequence of decisions across many years. The 2027 changes shift several of them at once.
What changes for family wealth transfer
The Finance Act 2026 removes one of the main routes families have used to pass wealth to the next generation tax-efficiently. A pension passing outside the estate, often free of inheritance tax. From April 2027, families thinking about how to transfer wealth need to revisit several long-standing routes alongside the new pension position.
Routes that deserve a fresh look
None of the following is a recommendation. Each route has rules, restrictions and consequences that depend on individual circumstances. They are listed here as the planning surface that families and advisers should map out together.
Lifetime gifting
Gifts made more than seven years before death typically fall outside the estate (the seven-year rule for potentially exempt transfers). The shorter the window before death, the less time large gifts have to qualify as fully exempt. With the 2027 changes pushing more estates over the inheritance tax thresholds, gifting decisions that were not necessary before become worth considering.
Trusts
Discretionary trusts, bare trusts and other structures have a role in some plans. The interaction of trusts with pensions, inheritance tax periodic charges and the tax position of beneficiaries is complex and needs legal as well as financial input. Trusts also have running costs and administration that need to be sized against the benefits.
Family investment companies
For some families with significant wealth, an FIC can provide a structure for long-term family wealth that is separate from pensions and from the personal estate. They are not for everyone, and have their own tax and administrative profile, but they belong on the planning map for the families they suit.
Charitable gifting
Estates that leave at least 10 per cent of the net estate to a registered charity pay inheritance tax at 36 per cent rather than 40 per cent on the remainder. For families with charitable intent, this can be coordinated alongside pension and estate planning. The 2027 changes do not affect this relief.
Life assurance written in trust
A whole-of-life policy written into trust can provide a sum that sits outside the estate and is available to pay any eventual inheritance tax liability, including on the pension element. Premiums need to be balanced against the size of any expected liability and the time horizon.
Coordinating with legal and tax advisers
Family wealth transfer is rarely the work of a financial adviser alone. Wills, trust structures, lasting powers of attorney and family discussions sit with solicitors. Personal tax positions and the use of available reliefs sit with accountants. Our role is to make sure the financial planning fits properly with the legal and tax structure your other advisers have put in place, and to coordinate with them where that is helpful.
For most families, the value of a coordinated approach is significantly higher than the sum of the parts. The 2027 changes make that coordination more important, not less.
Sources: Finance Act 2026; GOV.UK guidance on inheritance tax and gifts; GOV.UK guidance on charity reduction.