New Wills Law Could Unlock Dynamic Estate Planning and Tax Efficiency for UK Families

The UK’s laws on wills are set for a major overhaul—one that could fundamentally change how individuals plan their estates, manage inheritance tax exposure, and protect generational wealth.

Following the Law Commission’s recent recommendations, the UK government is considering a new legal framework that would modernise the country’s will-making laws for the first time in nearly 200 years. These changes could usher in a new era of dynamic, digital-first estate planning, with direct benefits for high-net-worth individuals, global families, and those managing complex, cross-border assets.

At Parachute Law, we believe this shift presents both an opportunity and a challenge. The opportunity: more flexibility, better tax optimisation, and modern tools for clients. The challenge: ensuring legal rigour, tax compliance, and strategic foresight as wills evolve into living, digital documents.

Here’s what’s changing, what it means, and how we can help you make the most of it.

The Law Commission’s Vision for a Digital Future

The foundation of will-making in England and Wales—the Wills Act 1837—has long required paper documents, handwritten signatures, and in-person witnesses. While these requirements have historically protected against fraud, they are no longer fit for a world where people live, work, and manage their finances digitally and globally.

The Law Commission’s 2025 report, “Modernising Wills Law,” proposes sweeping reforms. Among them:

• Legal recognition of electronic wills (e-wills)
• More flexible execution and witnessing rules
• Greater clarity around gift eligibility and cohabiting relationships
• A draft bill that could become law as early as 2027

The proposals aim to modernise the law without weakening its safeguards. And if passed, they’ll introduce an entirely new way to create, amend, and execute wills.

What Does This Mean for You?

The biggest change is flexibility. Under the proposed rules, people may be able to draft, update, and sign their wills remotely, using secure digital platforms. This is a game-changer for anyone with:

• International or dual tax residency
• Multiple properties or business holdings
• Complex family dynamics (blended families, foreign heirs, trusts)
• A need for real-time estate updates in response to life events

Estate planning would no longer be a “once-and-done” activity. Instead, your will could evolve with your life—allowing for real-time amendments in the wake of a marriage, business exit, relocation, or family addition.

Dynamic Drafting: Wills That Evolve With You

Under the current law, revising your will often means drafting an entirely new one. This can be time-consuming, costly, and—let’s be honest—easy to delay.

With electronic wills, however, we’re moving toward a future where estate documents are treated as living instruments, updated regularly and efficiently.

Here’s what dynamic drafting could look like:

• Adding or removing beneficiaries as relationships change
• Adjusting gifts and bequests based on business growth or liquidity events
• Creating conditional bequests tied to future events (e.g., children reaching a certain age or graduating university)
• Staggered inheritance structures to manage tax exposure for beneficiaries
• Automated triggers to update wills after specific events (like a property sale or divorce)

This kind of adaptability is especially valuable for international clients who need their UK wills to coordinate with overseas tax rules or succession regimes.

Tax Planning Just Got Smarter

One of the most compelling aspects of the proposed reforms is their potential to supercharge inheritance tax (IHT) planning.

Many tax reliefs and exemptions—like Business Relief or Agricultural Relief—require assets to be held for a specific period (typically two years) before they qualify. Under the new framework, digital timestamps embedded in e-wills could provide precise documentation, helping:

• Executors prove eligibility faster
• HMRC verify holding periods more easily
• Solicitors reduce dispute risks with clearer timelines

Estate planning advisers would also gain a powerful new tool: the ability to revise wills to reflect lifetime gifts, using secure, time-stamped updates that can strengthen claims for relief under the seven-year rule.

Lifetime Gifts and Digital Amendments

Lifetime gifting is one of the most common IHT mitigation strategies. But when the gift isn’t properly reflected in a will—or lacks documentation showing clear intent—problems can arise.

With digital wills, testators could update their documents immediately after a gift is made, noting:

• The date and value of the gift
• The intended beneficiary or purpose
• Whether the gift falls within the annual exemption (£3,000 per year)
• How the gift fits into the broader estate plan

This transparency would help reduce the risk of tax disputes, especially in estates with multiple gifts or when documentation is otherwise hard to trace.

Our team at Parachute Law can help clients build out secure gift records, link them to their digital wills, and create a system of event-driven estate planning.

Greater Scrutiny, Stronger Protections

The Law Commission’s proposals also aim to tighten rules around suspicious or conflicted gifts—those made to witnesses, caregivers, or cohabitants.

Currently, gifts made to a witness of the will are automatically invalid. The new proposals would expand this rule to include cohabitants and anyone signing on the testator’s behalf—unless a court finds that the gift is “just and reasonable.”

This adds an extra layer of protection for vulnerable individuals, while still allowing flexibility where appropriate.

To ensure these gifts hold up under scrutiny, we recommend:

• Explicit statements of intent
• Time-stamped documentation of gift decisions
• Independent legal advice for both parties
• Clear links between lifetime gifts and testamentary updates

Risk and Compliance in a Digital Landscape

While digital flexibility offers new opportunities, it also introduces new risks.

Wills that can be updated with a few clicks could, if mismanaged, undermine estate cohesion. Advisers must now treat each amendment not just as a convenience—but as a compliance event that needs:

• Accurate records
• Tax assessment
• Consistency with existing documents (e.g., trusts, LPA, business agreements)

At Parachute Law, we’re building digital-first compliance workflows to support clients through these transitions. That includes:

• Secure will storage with version control
• Annual will reviews and tax alignment check-ins
• Gift log templates tied to IHT rules
• Alerts when key exemptions or planning deadlines are approaching

What Should You Do Now?

Although the new law may not take effect until 2027, smart estate planning begins today.

Here’s how to get started:

1. Write or Update Your Will

If your will is over five years old—or if you don’t have one at all—now is the time to get it in order. We’ll ensure it meets current legal standards and prepare it for future updates.

2. Review Your Lifetime Gifts

Make sure your recent gifts are documented, recorded, and aligned with your estate plan. We'll help clarify how they affect your inheritance tax exposure.

3. Create a Digital-Ready Plan

Our team can build a flexible estate planning strategy that accommodates future changes and takes advantage of upcoming reforms.

4. Stay Informed

We’ll keep you updated on the passage of the new Wills Act, changes to IHT rules, and digital options as they become legally available.

A Final Word from Parachute Law

The future of estate planning in the UK is about more than legal compliance—it’s about strategic, flexible, and secure decision-making. These proposed changes offer a tremendous opportunity for individuals and families to:

• Reduce risk
• Increase control
• And preserve wealth for generations to come

At Parachute Law, we’re ready to help you navigate that future with clarity, confidence, and care.

Ready to secure your estate?

Call us: 0207 183 4547
Or email: thelegalteam@parachutelaw.co.uk
Or book a consultation online

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