Britons aged 55 and over are warned that neglecting a certain document can often leave them paying thousands of pounds more in inheritance tax.
The warning comes as HMRC have released their latest inheritance tax receipts showing £7billion was collected in the first 10 months of the 2024/25 financial year.
Experts caution that failing to create a Will could result in serious financial implications for families, especially as inheritance tax receipts keep increasing.
Over half of UK adults have not written a will, according to research from Canada Life. This includes 13 per cent who state they have no intention to write one in the future.
The Free Wills Month campaign, running throughout March 2025, aims to address this issue by offering free will-writing services. The initiative allows people aged 55 and over to create or update their wills at no cost through participating solicitors.
Andrea Rozario, chief corporate officer at Bower Home Finance said: "If your wishes aren't written down in legally binding document, this can complicate the inheritance process and even result in a higher tax payment. A lot of people make the crucial mistake of overlooking the implications of not having one."
A will can include specific provisions to help minimise tax liabilities
GETTYA will can include specific provisions to help minimise tax liabilities. By incorporating tax-efficient strategies into one's estate planning, they can safeguard their assets for future generations while minimising the tax burden.
Ian Dyall, Head of Estate Planning at Evelyn Partners, said: "If you don’t have a will then making one is often a huge step in establishing financial security and peace of mind for your family especially if you can get your solicitor to work closely with a good financial planner.
"This can prevent unnecessary stress and even disputes for the administrators and beneficiaries of an estate and could save them having to pay unnecessary inheritance bills."
The Free Wills Month campaign has achieved remarkable success, raising £30million in future income for charities.
This year's campaign runs from March 3 to 31, across 44 locations throughout the UK. The campaign is supported by 20 major UK charities including Age UK, British Heart Foundation, Marie Curie and the RNLI.
"The beauty of leaving a legacy gift is that it costs nothing now," campaign organisers explain.
While there is no obligation to leave a charitable gift, most people who use the service choose to do so.
Charitable donations can reduce the value of an estate to below the £325,000 tax-free threshold, potentially eliminating inheritance tax liability entirely while benefiting good causes.
Another key incentive for charitable giving is the reduced inheritance tax rate of 36 per cent. Britons who who leave at least 10 per cent of their taxable estate to charity can see a four per cent reduction to the rest of their estate.
Appointments for the free services are limited and fill up quickly, so Britons are encouraged to book early.
Experts warn that neglecting to create a will could lead to significant financial consequences for families, particularly as inheritance tax receipts continue to rise.
HMRC data shows inheritance tax receipts reached £7bn in the first 10 months of 2024/25.
This represents an 11 per cent increase on the £6.3bn collected during the same period the previous year.
January 2025 alone saw £639million in receipts, up 15 per cent from January 2024.
Stephen Lowe, group communications director at retirement specialist Just Group, commented: "The latest IHT receipts data for January will be a welcome boost for the Treasury.
"The 2024/25 tax year is looking almost sure to scoop another all-time record level of IHT revenues. Frozen thresholds and rising asset prices continue to be the main driver of the current record tax take."
The Office for Budget Responsibility predicts that approximately one in 10 deaths will incur inheritance tax by 2029-30.
This is double the proportion seen in 2023-24, meaning significantly more estates will face inheritance tax liabilities within a decade.
An expert has shared a way families can cut down their inheritance tax bill in the wake of recent changes to pension rules GETTY Changes to inheritance tax rules starting in 2027 will affect more families. For the first time, defined contribution pension pots will be included in estates' inheritance tax liabilities.
The Chancellor has also extended the freeze on nil rate bands until April 2030.
From April 2026, changes to business and agricultural property relief will impact estate planning.
The first £1m of combined business and agricultural assets can still be passed on tax-free, but any amount above this threshold will be taxed at 20 per cent.
Lowe advises: "We would encourage people to regularly assess the value of their estate, including up-to-date property valuations."
"Estate planning can be complex, and seeking professional financial advice can help individuals navigate the rules, mitigate potential liabilities, and ensure they pass on as much wealth as possible."
