Being appointed as an executor is often seen as a mark of trust. In reality, it is a demanding legal job, and from 6 April 2027 it is set to become more complicated still. The change will matter because most unused pension funds and pension death benefits are to be brought into the Inheritance Tax process, adding another burden for people already coping with bereavement, paperwork and family pressure. HM Revenue & Customs says the policy is designed to ensure pensions are treated more consistently with their purpose of funding retirement, rather than being used as a tax-efficient way to pass on wealth.
An executor is responsible for gathering assets, valuing the estate, settling liabilities, dealing with probate, handling tax and ultimately distributing what remains to the beneficiaries. That work can be straightforward in smaller estates, but modern estates are often far more complex, with savings, pensions, investments, digital records and property spread across multiple providers. HMRC’s technical note on the 2027 changes also makes clear that personal representatives will have to identify, value and report pension assets as part of the process.
The practical difficulty is not simply the additional tax calculation. Executors will need to trace pension schemes, obtain valuations, coordinate with administrators and make sure the correct information reaches HMRC within the usual deadline. Interest can start to accumulate if Inheritance Tax remains unpaid beyond the end of the sixth month after the death, which raises the stakes for families trying to administer an estate quickly. HMRC’s guidance similarly places responsibility for sharing information and collecting tax on personal representatives and pension scheme administrators, signalling a more administrative and potentially slower process.
The change also arrives within the broader context of increasingly complex family and financial arrangements. Second marriages, stepfamilies, unmarried partners and children from previous relationships can all create competing expectations, even where a will is clear. In these circumstances, the executor is often left to manage tension over valuations, property, timing and the handling of distributions. This can make an already difficult role feel far more exposed.
For that reason, careful planning during a person’s lifetime matters more than ever. Keeping an up-to-date record of assets, storing important documents securely, reviewing a will and pension nominations together, and giving executors a clear picture of digital accounts can all make the administration easier. It is also sensible to speak to potential executors before appointing them, so they understand the scale of the task and have an opportunity to decline if they do not feel able to take it on. HMRC’s technical note reinforces the need for pension interests to be identified and valued accurately, making good record-keeping particularly important.
The central message is that being an executor has never been a symbolic role. It carries legal responsibility, financial risk and a substantial amount of unpaid work, and the 2027 pension reforms will increase that pressure. Some people will still choose to appoint family members, while others may prefer a solicitor to act alongside them. Either way, the clearer and easier a person makes their affairs to administer during their lifetime, the less difficult the role will be for those left to carry out their wishes.
