If you have other savings and there might be Inheritance Tax to pay when you’re gone, most advisers will tell you to leave your pensions alone, make sure you’ve added your children and grandchildren as beneficiaries and spend your other money first. Being able to pass on your fund free of IHT is one of the biggest wins from pension freedoms and it looks as though, rather than blowing the lot, many are starting to realise this. And/or being well advised.
“HMRC scraps plans to tax pensions after death”
A couple of other Statement Highlights (in my world, anyway). A welcome ‘nothing happened’ on the treatment of pensions on death. They were never going to be liable to IHT (too complicated with trusts and trust law) but there was talk of making them income-taxable on the recipients at whatever age you die.
