Why Being an Executor Is Becoming an Increasingly Unattractive RoleWritten on June 19, 2026 by Michael Powell
Michael Powell – Financial Planning Partner
Key Points
- From April 2027, most unused pension funds and death benefits are expected to form part of an estate for inheritance tax (IHT) purposes.
- The changes may significantly increase the responsibilities of executors when administering an estate.
- Executors could face greater challenges identifying, reporting, and managing pension assets as part of the inheritance tax process.
- The reforms may increase the financial and administrative risks associated with acting as an executor.
For many people, being named as a personal representative (often called an executor) in a Will has traditionally been seen as an honour – a sign of trust from a family member or close friend. But from April 2027, that role is likely to feel far less appealing.
The reason? A fundamental shift in how pensions are treated for inheritance tax (IHT).
Historically, pensions have been one of the most tax-efficient assets to pass on death. In most cases, unused pension funds sat outside the estate for IHT purposes. This meant executors didn’t need to worry about them when calculating tax liabilities, and after contacting the pension schemes, beneficiaries often received these funds relatively quickly and did not need to be considered in the inheritance calculation. Simple administration.
From 6th April 2027 being an executor is no longer just a favour. It’s a serious financial responsibility.
Under new rules announced in the Autumn Budget 2024, most unused pension funds and death benefits will be brought into the value of the deceased’s estate for IHT purposes. This significantly increases both the complexity of estate administration and the potential inheritance tax bill.
Crucially, the responsibility for dealing with this doesn’t sit with pension providers — it sits with the personal representatives.
From 2027, executors will be responsible for identifying pension assets, reporting them to HMRC, and ensuring any IHT due is paid. That might sound manageable in theory, but in practice it introduces some serious challenges.
- Firstly, visibility. Pension arrangements are often fragmented, with individuals holding multiple pots across different providers. Executors may not even know they exist. Miss one, and you risk under-reporting the estate.
- Secondly, control. Executors could face tax liabilities on pension funds they don’t directly control. Coordinating payments between pension schemes, beneficiaries and HMRC adds a new administrative burden.
- And thirdly — most importantly — personal risk. Executors are personally liable for ensuring inheritance tax is correctly calculated and paid. If assets are distributed before the full tax bill is settled, or if something is missed, HMRC can pursue the executor personally for any shortfall.
This creates a particularly uncomfortable situation: being responsible for tax on assets you may struggle to locate, value or access.
In short, what was once a largely administrative role is becoming a technically demanding and potentially risky financial responsibility.
For investors, the takeaway is clear. If you are writing a Will, think carefully about who you appoint as executor – and whether they are equipped to deal with this increased complexity. And if you are asked to act as one, it may be wise to pause before accepting. Start by asking about their personal affairs and establish if the complexity is daunting. Do not underestimate the time and knowledge you will need.
If you would like to discuss how these inheritance tax changes could affect your estate planning, please contact us at info@kirkrice.co.uk
Learn more about our inheritance tax advice services here.
This article is intended for general information only and does not constitute tax, financial or legal advice. Tax treatment depends on individual circumstances and may change in the future.
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