Almost half (47%) of over-55s have not yet appointed an executor, according to Canada Life.
Amongst the over-55s who have appointed an executor, many are still falling short on providing the key information executors will need to locate assets, value the estate, pay any debts or taxes due and distribute to beneficiaries.
Just two-fifths (42%) of over-55s have shared all the information needed with executors about how to locate their pensions and 17% have shared some of their pension information but not all of it.
However, Canada Life warned this will be an increasingly important part of estate planning once pensions fall into the scope of inheritance tax from next April. After this date, executors will be responsible for tracking down each pension pot to assess for any IHT liability.
The firm’s research found the pattern is similar across other financial products. Just 26% of over-55s have provided full information about how to locate their life insurance and protection policies, while 30% have shared all the details needed for their executor to locate their investments.
John Chew, tax, trusts and estate planning expert at Canada Life, said: “Providing your executors with as much information as possible about how to locate assets will ensure that your estate can be administered as efficiently as possible when the time comes.
“This will become even more important from April 2027 when pensions are set to fall into scope for inheritance tax calculations, and executors have the added responsibility of tracking down pension arrangements to assess for a liability.
“Preparation today will save your executor many hours of work at an already distressing time and reduce the risk of inaccuracies or unexpected inheritance tax bills.”
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