DONATE YOUR PENSION TO THE GARDENER
With the recent changes made to non-occupational pension legislation, you can now nominate anyone to receive your pension benefits.
Should death occur before age 75, the nominee can receive either a tax free income, tax free lump sum or you can place the funds into a tax efficient Trust. Post 75, the pension fund can be passed to whomsoever you like free of inheritance tax. The beneficiary will then merely pay income tax on any funds drawn from the pot (at their highest rate).
These changes could mean that clients might opt to stop drawing money from their pensions, and instead receive income from other investments. This will leave their pension fund to act as both an income reserve and a great inheritance tax saving scheme.
If you would like some more information, then do please see our updated notes.