New UK Wills Law Would Allow Dynamic, Flexible Tax Planning

Proposed amendments to the UK law governing wills, which has stood since the Wills Act of 1837, could fundamentally transform how individuals plan, update, and execute their wishes.

The Law Commission’s Modernising Wills Law report contains recommended reforms and a draft bill for a new Wills Act, aiming to bring UK law in line with the norms of modern life.

People are living increasingly mobile and digital lives, with complex family structures and global assets. The proposals in the report, such as introducing electronic wills and relaxing formalities, could make it easier and quicker for individuals to create and amend wills.

What was once a slow, paper-based legal process could soon be accessible anywhere, at any time.

While this change creates new opportunities, it also poses new risks for anyone planning their estate with inheritance tax efficiency in mind.

The Law Commission’s draft Wills Act represents a structural evolution in how testamentary intent is documented, formalized, and ultimately honored. This is a call for tax and estate planning professionals to become more dynamic in a digitally enabled world.

The government has formally welcomed the report’s recommendations and indicated it will give the draft bill “detailed consideration” as part of the pre‑legislative process. There is a strong chance that most of the recommendations, if not all, will be carried forward into the final legislation which could receive Royal Assent as soon as mid- to late-2027.

Dynamic Drafting

The Law Commission’s proposed framework could lead to exciting new will drafting strategies that will allow for dynamic will-making and amending for maximum tax efficiency.

Estate planning, particularly for global families and high-net-worth individuals, has always required periodic updates, but with electronic wills, updates can be done in real time.

This has significant implications for how advisers support clients. Will drafting will likely become less about finality and more about flexibility to evolve in accordance with major life events such as business exits, relocations, marriage, or the birth of children or grandchildren.

For international clients, especially those navigating multiple tax systems, the ability to align testamentary documents with regular, real-world changes is invaluable. With the reforms, wills can grow with the individual, and that should be reflected in an adviser’s approach.

We may see more sophisticated planning techniques such as conditional bequests tied to future events, staggered gifting to manage beneficiary tax exposure, and strategic uses of trusts. These structures allow for better control over how and when wealth is distributed, while also supporting tax mitigation strategies.

But with that opportunity comes the need for vigilance, particularly around execution standards, tax compliance, and the coherence of the estate plan.

Tax Reliefs, Exemptions

The proposed reforms could also influence how inheritance tax reliefs and exemptions are applied, potentially impacting the final tax bill.

Certain reliefs, such as Business Relief and Agricultural Relief, require qualifying assets to be held for at least two years prior to death or transfer. As relief entitlement often hinges on the precise moment a will takes effect, digital timestamps will become critical.

Under the reforms, executors will be able to use digital records to verify holding periods, reducing disputes and accelerating relief entitlement. For professionals providing tax advice, this likely means fewer queries on qualification dates and faster resolution of relief claims.

Lifetime Gifts

The proposed reforms, particularly by their inclusion of digital will formats, would simplify how wills are created and revised. If introduced, the new law will allow people to update their will digitally to reflect changes, such as after making a lifetime gift.

Many people already use gifting as a tool to reduce inheritance tax exposure through inheritance tax-free allowances, such as the annual exemption, but this proposal could facilitate a significant uptick in individuals choosing to do so. While such flexibility increases opportunities, there are still risks where gifts lack documentation showing clear intentions and timelines.

Additionally, inheritance tax rules will continue to apply. For instance, gifts over £3,000 ($4,000) made within seven years of the testator’s passing will be liable for the tax.

Advisers also need to ensure that their clients are aware of the law which still stands, regardless of whether they update their will to reflect the gift. Otherwise, the client may believe they have secured a tax-efficient solution when the estate could face unexpected levels of inheritance tax.

Stricter Gift Scrutiny

The Law Commission has also recommended expanding the rule that invalidates gifts to witnesses or signatories, to include the testator’s cohabitants and those who sign on the testator’s behalf. This recommendation accompanies a proposal to give courts the power to save a gift if it is just and reasonable.

This positive change will help protect the estate of vulnerable individuals by increasing scrutiny and ensuring improper gifts fail. For a gift to be upheld, it’s necessary to have clear documentation, explicit statements of intent, and precise dates.

Advisers should build processes that record gift dates and link them to will updates so any query from the UK tax authority can be answered with certainty. In the absence of careful records, a seemingly informal transfer may trigger scrutiny and potential challenge.

Seizing Digital Advantage

The shift to electronic wills redefines how risk is managed, how compliance is demonstrated, and how strategic opportunities are seized.

Advisers must embed rigor into real-time processes and view each update as a chance to optimize their clients’ estate plan.

These reforms will mean that making a will could become a far more fluid and accessible process, and anyone preparing or updating a will should consider treating it as a living document that adapts alongside major milestones.

Individuals may be able to execute or update their will remotely, using secure electronic signatures rather than arranging in‑person signings.

Keeping digital version and a printed copy in safe places could bring extra peace of mind and simple reminders for annual or event‑driven reviews may help people stay current.

Recording lifetime gifts in a spreadsheet linked to testamentary provisions could support any claim to relief under the seven-year rule.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law, Bloomberg Tax, and Bloomberg Government, or its owners.

Author Information

Scott Taylor is partner with Moore Barlow and head of the firm’s specialist private wealth disputes team.

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