No one expects the unexpected
Monty Python taught us that no one expects the Spanish Inquisition. It showed up dramatically, in red robes, at exactly the wrong moment.
Real life is rarely that theatrical. But the principle sticks. Illness, divorce, loss of capacity, a change in the law - these things don't give you much warning, and they never arrive at a good time, taking us by surprise.
In this article, we look at the financial blind spots that catch people out most often. Things like… what happens to your estate without a Will, how divorce reshapes retirement planning, what's changing with inheritance tax, and why a Lasting Power of Attorney matters more than most people realise.
Most of us quietly assume it would all just... work itself out when life shifts. Unfortunately, it doesn’t work that way. Without the right things in place, the law decides for you. Make sure you’re prepared for what life throws at you by reading the below.
The assumption that catches people out
"If anything happened to me, it would all go to my spouse anyway."
We hear this a lot. It feels obvious, but it isn't always how the law works.
If you die without a valid Will in England and Wales, and you have both a spouse and children, your spouse doesn't automatically get everything. They receive your personal possessions and the first £322,000 of your estate. Anything above that is split - half to your spouse, half to your children.
For families who own property, that threshold is quickly met. Part of the estate could end up held in trust for the kids, passing to them outright at eighteen. That's probably not what you had in mind.
And what about those who aren’t in a marriage or civil partnership? Your partner doesn't automatically inherit anything - no matter how long you've been together.
A Will is one of the simplest things you can put in place to ensure your money and property is left to your intentions. One of the best things you can do is get one and review it when life changes.
The pension detail almost everyone forgets
"My pension is covered in my Will."
In most cases, it isn't.
Pensions are usually held outside your estate and distributed at trustee discretion, guided by your expression of wishes form. It's a simple document, but it only works if it's up to date.
We regularly see nominations filled in years prior, before things like marriage, children, or divorce. Sometimes an ex-partner is still listed, or sometimes there's no nomination at all.
When you work with us, we make sure this is reviewed and current. It takes minutes and matters enormously.
When relationships change
Divorce is one of the biggest financial events many people will go experience, and the pension is often the largest shared asset – sometimes, bigger than the home.
What people often miss is what comes after the divorce settlement.
It’s important to review your contributions as an individual. Rethinking your investments and future strategy. A financial future that was once shared needs rebuilding from scratch.
At Pension Pulse, we help clients through that process - not just the immediate decisions, but the long-term ones that shape retirement years down the line.
A shifting inheritance tax picture
For years, pensions have been one of the most tax-efficient ways to pass wealth on. This is changing.
The government has announced plans to bring unused pension funds into scope for inheritance tax from April 2027. The detail is still being finalised, but the direction is clear.
If your planning assumed pensions would sit entirely outside inheritance tax, it's worth a conversation. Strategy needs to evolve - when to draw income, how to sequence assets, how beneficiaries are structured. It all matters more now.
The conversation people quietly avoid
Alongside death and divorce sits another possibility that many prefer not to think about: loss of mental capacity.
Under the Mental Capacity Act 2005, without a valid Lasting Power of Attorney in place, even a spouse has no automatic authority to manage your financial affairs if you lose capacity. Families may need to apply to the Court of Protection to appoint a deputy, a process that can be slow and stressful.
We encourage clients to consider LPAs and to understand how they interact with pensions and retirement planning. Financial structure only brings reassurance if someone can operate it when needed.
Be prepared for whatever life throws at you
Problems rarely come from a single oversight. They come from a Will that was never updated, a pension nomination that was never reviewed, a divorce that changed everything but wasn't followed through financially, or a tax rule that shifted.
At Pension Pulse, we bring it all together. We review and update expression of wishes forms. We help rebuild plans after divorce. We model pension and estate planning around changing tax rules. We make sure pensions are invested right, charges are sensible, and protection reflects your life today - not five years ago.
Planning for the unexpected isn't pessimism. It's care.
When the unexpected arrives, the difference between calm and chaos usually comes down to decisions made quietly, years earlier.
If you'd like to review where things stand, we're here.
