The 2026 IHT Shift: Facilitating the Great Wealth Transfer with Confidence

The rules of the game have changed. With the 2026 fiscal updates bringing pensions firmly back into the spotlight for Inheritance Tax (IHT) calculations, the traditional "pension-led" estate planning playbook has been turned on its head.

Advisers can no longer simply advise clients to leave their pensions untouched as a tax-free legacy vehicle. The priority has shifted toward active, lifetime gifting and strategic asset dissipation. But this presents a classic client dilemma: “How much can I safely give away without running out of money myself?”

Solving the Giver's Dilemma

Fear of the unknown keeps many wealthy clients from helping their children or grandchildren when it matters most. They worry about the costs of long-term care or late-stage inflation eroding their capital.

Dynamic cashflow modelling bridges this gap between fear and generosity. It allows you to create an "IHT Stress Test":

• The Gifting Simulation: Model a lump-sum gift of £100,000 today to help a child onto the property ladder, tracking the 7-year PET (Potentially Exempt Transfer) clock visually.
• The Safety Net: Prove to the client that even in a worst-case market downturn, their remaining assets are more than sufficient to cover their lifetime income needs.
• The Ultimate Comparison: Side-by-side charts showing the projected IHT bill with action versus without action.

By visualising the safety net, you give your clients the confidence to act. Furthermore, bringing the children into these cashflow meetings to discuss the transfer creates a natural bridge to the next generation of clients for your firm.

• The Insight: Successful estate planning isn't just about mitigating tax; it's about witnessing the impact of your wealth during your lifetime.

Navigate the new 2026 IHT realities with confidence. Get in touch to find out how our cashflow modelling tools can revolutionise your estate planning process.