Millions of Brits are at risk of unexpected bills as they have not completed one simple task. Experts are warning that they are currently exposing loved ones to unintended inheritance tax bills and probate complications.

New research from Canada Life showed that 27% of over-55s in the UK have no will in place. Those who die without a will have their estate distributed according to intestacy rules, while their personal administrator is responsible for paying an inheritance tax. According to the insurance company, 38% of over-55s say that procrastination is the main reason why they have not written a will. Meanwhile, 21% say their estate will be passed on to their partner, and 12% claim it’s too costly to get a will drawn up.

The research also shows that major life events often fail to make people update their will. Some 68% of over-55s did not update their will after buying a home, while 39% did not change theirs after getting divorced.

Likewise, 53% did not update their will after having children and 44% after getting married. Liz Hardie, technical specialist at Canada Life, is urging people to make sure they have an updated will.

She said: “Leaving a will outdated, or not having one at all, means that UK laws of intestacy decide who will inherit your estate.

“This may not be aligned with your wishes and could result in a costly legal dispute or an unexpected inheritance tax bill if your assets go to your children instead of a spouse or civil partner.”

Mrs Hardie added: “Pensions coming into scope for inheritance tax from 2027 is already expected to complicate the probate process, as families are tasked with tracking down a lifetime’s worth of pension policies.

“Not having a will only makes this process even harder, potentially causing delays or even penalties for not paying an inheritance tax bill in time. With inheritance tax potentially in the Chancellor’s sights ahead of the upcoming Budget, it’s a good time to make sure your will is up to date, or draft one if you haven’t already.”

According to Citizens Advice, when a person dies without a will their estate, which includes their money and property, is shared out under the “rules of intestacy”. This usually means married partners, civil partners and some relatives inherit the estate.

As well as unexpected financial implications, not having a will can also leave families exposed to emotional stress. The research shows that 21% of adults have experienced a family dispute over inheritance.

The probate process can also be delayed by not having a will. Some 12% of people who have experienced delays said it was because there was no will in place.

She added: “Whilst policy and tax rules can shift, the fundamentals of protecting your loved ones remain the same. Having a will in place is a tool that can offer certainty and control – it ensures your wishes are clearly documented and your assets and belongings are distributed to your loved ones in accordance with your wishes once you are gone.

“Your will can, and should, evolve in the same way that life evolves. Whether it’s getting married, buying a new home or welcoming a new grandchild, these are the trigger moments that should prompt you to re-evaluate the legacy that you wish to leave behind.

“A professional financial or legal adviser can offer independent advice and guidance when drawing up or updating a will, as well as ensuring your estate is in good order for the next generation.”