Pension - Expression of Wish Beneficiary Tax Liability

Hi all,
I am just going through my affairs in case something unexpected happens and I am suddenly no longer actually living in the the land of the living.

So for some of the various pension schemes I have there is a fund beneficiary option in that if I go this side of sixty five then the total value of the accrued funds will go to my daughter (I'll have to watch out for roller skates on the stairs etc.). To me (and some of the documentation seems to allude to this) this is like a life assurance type of arrangement and if so then like a specific purpose built policy would the pay-out be inheritance tax exempt?

I asked one of the fund managers but they said, not unsurprisingly, they couldn't advise on that point and that I should ask a financial adviser with knowledge of such matters.

Is anyone here able to advise?

Many thanks in advance.
FTG.
 
@Bravo_Bravo is an IFA.
He may be able to give general advice.
 
Hola @Fiona_TG

Can you outline the type of scheme you have? Is it a final salary scheme, or a personal pension? And have you started to draw your pension? This greatly affects what choices you have

If its the final salary scheme ( or an Occupational Money Purchase Scheme ) and its in payment, you're unlikely to be able to leave a lump sum to anyone, but you'll usually have a percentage of the pension payable to a nominated beneficiary such as spouse / civil partner. Minors may be able to benefit, but in limited circumstances.

If its a personal pension type scheme and you've not yet started to take an annuity, it may be possible to leave the whole fund to a nominated beneficiary, and if you pop your clogs prior to age 75 the whole bloody lot can be taken free of tax, as long as its under the Lifetime Allowance of just over £1 million.

This assumes the personal pension has changed its rules to allow for pension freedoms.

the options and variables are very wide; if you PM me a phone number I'll be happy to talk offline.

For disclosure; I packed in my IFA practice back end of last year, focus now on Wills and Trusts, but I'm still a pensions dullard...
 
Hola @Fiona_TG

Can you outline the type of scheme you have? Is it a final salary scheme, or a personal pension? And have you started to draw your pension? This greatly affects what choices you have

If its the final salary scheme ( or an Occupational Money Purchase Scheme ) and its in payment, you're unlikely to be able to leave a lump sum to anyone, but you'll usually have a percentage of the pension payable to a nominated beneficiary such as spouse / civil partner. Minors may be able to benefit, but in limited circumstances.

If its a personal pension type scheme and you've not yet started to take an annuity, it may be possible to leave the whole fund to a nominated beneficiary, and if you pop your clogs prior to age 75 the whole bloody lot can be taken free of tax, as long as its under the Lifetime Allowance of just over £1 million.

This assumes the personal pension has changed its rules to allow for pension freedoms.

the options and variables are very wide; if you PM me a phone number I'll be happy to talk offline.

For disclosure; I packed in my IFA practice back end of last year, focus now on Wills and Trusts, but I'm still a pensions dullard...

Hi BB,
Well it is a mix, I have one final salary, one personal pension and one company with profits scheme in the main with a few other small fare company schemes too.

It was confirmed to me today that if I go before 65 (I am not quite there yet) the whole of my final salary fund will be returned to me, well no to me but to my nominated beneficiary of course. Should I pop my clogs between 65 and 70 then some amount will be returned, presumably a diminishing scale as I get closer to 70. I have heard from the other two main pensions and seems to be the same for them.

Clearly my Army pension just disappears from the face of the earth once they have been informed that I too have so disappeared, or more accurately I suppose moved six feet down from there.

I'll PM you that number and we can figure out a time to talk as I appreciate trying to map out the detail here of by email would be like wading through treacle.

Many thanks for your help, that is very much appreciated. For us non-experts it is a minefield to navigate, just like everything else the Government legislates over then.

Cheers,
FTG.
 

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