Key Partnerships urges law firms to consider later life lending as part of IHT planning
Research cited by Key found around 80% of law firms had experienced an increase in inquiries about IHT and estate planning.
Key Partnerships has urged law firms to consider later life lending as part of inheritance tax (IHT) planning as inquiries about IHT and estate planning increase.
Research cited by Key found around 80% of law firms had experienced an increase in inquiries about IHT and estate planning.
Government data showed IHT receipts reached a record £8.7bn in the 2025/26 tax year and are forecast to increase to £14.5bn by 2030/31.
Key Partnerships said rising property values and the continued freeze to the nil-rate band and residence nil-rate band were contributing to higher receipts.
The planned inclusion of unused defined contribution pension funds within estates for IHT purposes from April 2027 is also expected to increase liabilities.
Key Partnerships said later life lending could form part of IHT planning in some circumstances, including by allowing homeowners to access housing wealth for gifting.
Separate research from the Association of Lifetime Lawyers found 66% of law firms believed clients were unaware of the full range of potential IHT planning options, including later life lending.
Damon O’Connell, director at Key Partnerships, said: “People looking for IHT and estate planning advice increasingly need to be advised on a wide range of options before deciding how they are going to access wealth as part of retirement planning .
“Law firms are often at the heart of these conversations and are ideally placed to help clients understand the options available to them. That includes ensuring they have access to specialist advice where solutions sit outside their own area of expertise.”
“Housing wealth is often one of a client’s largest assets and should form part of the wider conversation around inheritance tax and estate planning.
“Modern lifetime mortgages can play an important role in certain circumstances, but it is essential that clients receive independent, whole-of-market advice from qualified specialists.
“Strong referral partnerships help ensure clients can access the expertise they need while supporting good customer outcomes and a more joined-up approach to estate planning.”
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