Pension schemes face continued uncertainty around the detail of the inheritance tax (IHT) changes impacting pensions, with time pressure on making death benefit decisions and payments identified as the leading concern, according to Sackers.

From 6 April 2027, most unused pension funds and death benefits will be brought within the scope of IHT.

Sackers said the regime will create new responsibilities for pension schemes and potentially significant administrative challenges.

While a poll found that more than two thirds of respondents felt very ready or fairly confident about their readiness for the changes, it identified continuing uncertainty and practical challenges for schemes.

For instance, schemes will need processes for responding to personal representatives, providing information and dealing with withholding and payment notices within statutory deadlines.

Also, the potential IHT implications may be a relevant factor when trustees exercise their discretion, but it should not override other relevant considerations when deciding the appropriate beneficiary.

On discretionary benefits, the poll found almost half of respondents currently expect to continue their existing approach, while a similar proportion intend to wait and see how practice develops before considering changes.

The most popular approach to member communications was to include a brief explanation of the changes in existing communications such as member newsletters, although Sackers warned that schemes will need to ensure that communications provide guidance rather than stray into individual tax advice.

Sackers said trustees should confirm who their scheme administrator is for tax purposes, speak to their administrator about readiness, and review scheme rules and member documentation.

They should also consider necessary member communications, and review privacy notices and data protection processes.

Sackers partner, Eleanor Daplyn, said: “While our polling suggests many trustees are relatively confident about their preparations, the volume and detail of questions we received shows there is still a lot to work through.

"The new regime will affect not only the tax treatment of certain pension benefits, but also how schemes administer deaths, interact with personal representatives and beneficiaries, and meet new deadlines.

“With 6 April 2027 approaching, trustees should be speaking to their administrators now and reviewing their processes, scheme documentation and member communications.

"While further guidance is still to come, there is plenty that schemes can and should be doing in the meantime.”

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