Throughout the year, the legal industry witnessed changes to legislation, consultations to improve processes, and announcements of what to expect in 2025, many of which affected Estate Planning. As 2024 nears its end and we move in to 2025, we’ve selected some of the biggest news stories of the year.
1. 2024 Autumn Statement
On Wednesday 30 October, Chancellor Rachel Reeves delivered the first Labour government’s Autumn Statement in 14 years, confirming upcoming changes to taxation, business rates, and pensions. Following months of speculation (making it the worst kept secret budget of all time – and actually limiting its impact on financial markets), Chancellor Rachel Reeves outlined new measures to stabilise public finances and raise revenue.
Below is a quick overview of some of the key announcements from an Estate Planning Perspective:
- Inheritance Tax Reform – With Inheritance Tax (IHT) reforms at the forefront, the Chancellor introduced a four-point plan focused on revenue generation, impacting estates in probate, which included freezing the Nil Rate Band at £325,000 until 2030, closing the pension “loophole”, and reforming agricultural and business property reliefs;
- Pension changes – including bringing pensions into IHT calculations from April 2027.
2. Justice Committee’s inquiry into HM Courts and Tribunals Service (HMCTS)
In November 2023, the government initiated an inquiry into the probate service, addressing concerns about delays in estate administration and the support provided to beneficiaries and Executors. The Justice Committee invited submissions on issues such as capacity, resources, and the impact of digitisation, with a deadline of 22 January 2024.
The Committee conducted several evidence sessions in early 2024, gathering insights from legal professionals, charity representatives, and government officials. However, the inquiry was discontinued following the dissolution of Parliament on 30 May 2024 due to the General Election. Before disbanding, Committee Chair Sir Robert Neill KC MP communicated key findings to the Ministry of Justice, highlighting the detrimental effects of probate delays on grieving families, charities, and local authorities.
In response, HM Courts and Tribunals Service (HMCTS) implemented measures to enhance the probate service. By July 2024, the average processing time for probate applications had improved to 9.3 weeks, down from 14 weeks in July 2023. Additionally, HMCTS reported 12 consecutive months where the number of applications processed exceeded new receipts, reducing the backlog to approximately 49,500 cases—the lowest since May 2020.
Further improvements included the introduction of a new design for Grant certificates featuring enhanced security measures, and the development of a dashboard to track both digital and paper applications. HMCTS also committed to publishing more detailed statistical information on caseloads and processing times to increase transparency and assist practitioners.
3. The Law Commission’s Wills Project consultation
In October 2023, the Law Commission resumed its Wills Project, focusing on two key areas: the validity of electronic wills and the rule that marriage or civil partnership revokes an existing will. This renewed attention reflects technological advancements and growing concerns about predatory marriages.
The Law Society has expressed support for modernising Will-making laws, emphasising the need for appropriate safeguards in electronic Wills to prevent fraud and undue influence. They also highlight the importance of protecting vulnerable individuals from exploitation through marriage and Wills processes.
The supplementary consultation period closed on 8 December 2023. The Law Commission is now analysing responses and developing final recommendations for comprehensive reform. They aim to publish a final report and a draft bill in early 2025.
As the Law Commission prepares its final recommendations, stakeholders anticipate reforms that will modernise Will-making, enhance protections against exploitation, and address the complexities introduced by technological advancements.
4. Isle of Man’s Assisted Dying Bill
In November 2023, the Isle of Man’s Assisted Dying Bill 2023 passed its second reading in the House of Keys, proposing to allow terminally ill residents the option to end their lives under specific conditions. The eligibility criteria included being over 18, having a prognosis of six months or less to live, residing on the Isle of Man for at least 12 months, and possessing the legal capacity to make such a decision.
Subsequent debates raised concerns about safeguards, potential coercion, and the adequacy of the residency requirement. In response, amendments were made to the bill during its progression through the House of Keys. Notably, the prognosis requirement was extended to 12 months, and the residency criteria was increased to five years to mitigate fears of an influx of non-residents seeking assisted dying services.
In July 2024, the House of Keys passed the bill by a vote of 16 to 8, advancing it to the Legislative Council for further scrutiny.
The Legislative Council conducted evidence sessions, hearing from various experts and stakeholders to address concerns about coercion and the role of medical professionals in the process. Discussions included suggestions for involving multidisciplinary teams to assess eligibility and ensure robust safeguards.
As of December 2024, the Legislative Council is scheduled to consider the bill’s clauses in detail on 17 December. If approved, the Isle of Man would join a growing number of jurisdictions legalising assisted dying, marking a significant shift in end-of-life care policy. The bill’s progression reflects ongoing debates balancing individual autonomy with ethical and societal considerations.
5. Lasting Power of Attorney application timings falling short of targets
Recent data revealed that during the 2023/24 financial year, the Office of the Public Guardian (OPG) took an average of 76 working days (approximately 15 weeks) to process new Lasting Power of Attorney (LPA) applications, nearly double its target of 40 working days. Notably, one application experienced an extreme delay, taking over 10 years (2,777 working days) to finalise.
These delays have been attributed to errors in applications and the predominance of postal submissions, which prolong the rectification process. To address these issues, the OPG has been working to reduce the backlog of unprocessed LPAs, achieving a 48% reduction from its August 2023 peak to 149,400 by March 2024. Additionally, the introduction of digital application methods aims to expedite processing times and minimise errors.
The Powers of Attorney Act 2023, set to introduce a digital LPA in Autumn 2024, is expected to further modernise and streamline the application process. This development underscores the importance of establishing an LPA whilst you still have mental capacity, as delays can impede timely access to crucial decision-making authority when it’s most needed.