The government should look to ease the probate process by linking its plans to bring unused pension pots into the scope of inheritance tax (IHT)  with the pensions dashboard project, RSM UK has said.

The government previously confirmed the executor of the estate will be responsible for ensuring the correct amount of IHT is paid on any unused pension pots from April 2027, of which there could be several.

RSM UK pension audit director, Andrew Aston, said this could add “complexity” unless the government considers allowing the ability to view the value of all unused pension pots in the dashboard.

“This could speed up and simplify the probate process, enabling grieving families to easily calculate any IHT owed in time to meet the deadline to pay IHT within six months of a relative’s death,” Aston said.

“Probate is complex and unwieldy, often creating additional stress for families of the deceased, at an already stressful and upsetting time.”

Those who miss the six-month window to pay IHT will face interest charges from HMRC on the amount owed, which could amount to significant sums on large pension pots.

Aston warned that unless the government takes a “joined-up approach” to the pensions dashboards and the introduction of IHT charges on pension pots, meeting the six-month deadline to pay could become “even more challenging, creating further headaches for families dealing with the death of a loved one”.

LCP partner, Steve Webb, also previously raised concerns around the additional pressure that this move puts on grieving families, warning that "life is tough enough when you have just lost a loved one without having extra layers of bureaucracy on top”.

Given this, he said that complications will “no doubt” arise where the family member cannot track down all of the deceased person's pensions or where providers are “slow” to supply the information needed to work out the IHT bill.

“Whilst the changes HMRC has made are undoubtedly good news for pension schemes and those who administer them, it is hard to see that they are good news for bereaved families,” he added.

Aston and Webb were not the only industry experts to raise concerns on this government move, as AJ Bell head of public policy, Rachel Vahey, also previously warned that bringing unused pension funds and death benefits into the scope of IHT from April 2027 was “by no means creates a simple process".

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