House of Lords identifies significant risks to executors of Wills

With the proposed new pension changes next year, the House of Lords has identified some significant risks to executors of Wills.

Pension funds are proposed to be eligible to be included within assets for inheritance tax from next year.

With Executors being personally responsible for any inaccuracies in reporting and the current 6 months’ timescale for such reporting being in direct conflict with the timescales operated by pension providers, Executors and Personal Representatives face significant challenges and risk.

As a results, family members, friends and even professionals will increasingly step away from wishing to expose themselves to such risks.

It is recommended to increase the timescale for reporting/payment of any monies due from 6 months to a year in a bid to safeguard Executors and Personal Representatives being liable for matters which are not within their control.

It is also recommended to have a gradual 2-year introductory period of change, to enable firms to adjust their processes and systems to accommodate the new legislation.