London Office: 020 3755 3235 | Ipswich Office: 01473 384 858 | Email: enquiries@swallow.financial

ARE PENSION TRUSTS DEAD?

 

With the recent changes made to pension death benefits, Will drafters may need to seek professional financial advice when considering a pensions trust for a client.

The different tax treatment of scheme pensions, death in service and lifetime annuities (not to mention uncrystallised pensions) means that in the wrong circumstances 45% tax will be paid when much lower taxes could have been available without a pension trust.

Through the use of flexible nomination forms and the new “nominee” system for non-occupational pensions, there is now scope for tax and inheritance planning which has never been available before.

If you would like to review your existing clients’ Will structures in light of the changes, please do get in touch.   Alternatively, should you prefer some general information on the taxation surrounding the death of a pension holder, our updated FAQ is available here.

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