New inheritance tax risks emerge from Reeves’ Budget for those who made their own wills, legal experts warn

A legal expert has warned that Rachel Reeves’ new Budget changes could significantly affect how people write and update their wills, and that delaying action could leave families facing unexpected tax bills. 

Ross Anderson, Partner at Jones Whyte, said many people assume their existing will is “set and forget,” but changes to inheritance tax thresholds, reliefs and exemptions may mean older documents no longer reflect their intentions. 

He noted that more than half of UK adults have never reviewed their will after writing it, despite major financial and legal changes in recent years. “The Budget is a reminder that a will needs regular maintenance,” he said. “If the rules shift and your will doesn’t, your beneficiaries could be left with problems you never intended.” 

To help people prepare, Anderson has outlined six key factors to watch as the new Budget takes effect, highlighting how the changes could impact anyone planning to write, or update, their own will.  

Review your will as Budget changes may alter tax rules 

The new measures could reshape how estates are taxed, meaning wills drafted years ago may no longer be tax-efficient. Rising property values combined with frozen tax bands mean more people could unexpectedly exceed inheritance tax thresholds. 

Anderson said many people assume their will still works as intended, but changing tax rules can significantly alter how much of their estate passes tax-free. “Your will may look right on paper,” he warned, “but the tax outcome could be very different after the Budget.” 

With thresholds frozen and new rules affecting pensions, business assets and gifting on the way, he warned that more estates could fall into the inheritance tax net. “Small changes in legislation can have a big impact on what your family ultimately receives, which is why you should consistently review your will when rules are altered and changed” he said. 

Complex families BEWARE 

Blended families, cohabiting partners and stepchildren are particularly vulnerable under the updated tax landscape. Anderson said DIY or outdated wills often fail to account for these situations properly, meaning unmarried partners may receive nothing at all and stepchildren can be unintentionally excluded unless named explicitly. 

He also noted that remarriage typically revokes an existing will, a point many people overlook. “These gaps only become more problematic when tax rules change,” he said, urging anyone in a non-traditional family structure to review their documents urgently. 

Ensure wording still matches the law 

Even wills that seem clearly written can become ambiguous under updated legislation. Anderson said vague or broad phrases such as “my savings” or “my property” may no longer align neatly with tax definitions if rules change. 

Poor drafting is already one of the most common issues with homemade wills, and Budget changes could make unclear wording even more problematic. “Families often only discover these issues after someone has died,” he said. “That’s when disputes can happen.” 

Don’t miss new tax-planning opportunities 

The Budget may open or close key tax-planning options, yet DIY will-writers often fail to take advantage of them. Anderson said tools such as trusts, lifetime gifts and charitable donations could now offer different benefits, but DIY templates don’t update automatically. 

“Tax rules move quickly, and a plan that worked even a few years ago may now be outdated,” he explained. Professional advice, he said, can highlight opportunities to significantly reduce tax burdens for beneficiaries. 

Know the legal requirements 

Anderson warned that many DIY wills fail on basic legal requirements. “DIY wills might seem straightforward, but they often lack the legal rigour needed to make them valid,” he said. “You must be 18 or over, make it voluntarily, be of sound mind, and meet the strict signing rules.” 

A will must be signed in the presence of two witnesses over 18, who must also sign in your presence. “Your witnesses cannot benefit from your will,” Anderson added. “If you leave something to a witness or their spouse, that gift likely won’t be valid.” 

Professional guidance is more important than ever 

According to GOV.UK, the signing rules remain unchanged, but Anderson stressed that the financial considerations around wills are evolving rapidly. “A will can be legally valid but financially inefficient,” he said. “With tax rules shifting, expert advice is becoming increasingly valuable and should always be considered when writing your will.” 

While DIY wills may work for those with very simple circumstances, he said the risks are far higher for most people. “The money saved by doing it yourself can seem attractive,” Anderson added. “But compared to the potential financial and emotional cost of getting it wrong, professional help is usually worth the investment.”