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The pension wrapper and SBTs—lump sum pension benefit planning on death

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Published on: 13 April 2016

Published by a LexisNexis Pensions expert

Table of contents

What is a pension death benefits trust (also known as an SBT)?
How have such trusts traditionally been used for tax planning for married couples?
How are pension lump sums taxed since 6 April 2015 where the deceased does not have an SBT in place? How does this compare with the position prior to this date?
In light of these changes, are there any continuing benefits of using SBTs in pension death benefit planning?

Article summary

Pensions analysis: Andrew McErlean, chartered financial planner and Society of Trust and Estate Practitioners (STEP) affiliate member working for PK Financial Planning LLP, outlines spousal bypass trusts (SBTs) and how they are used in relation to pensions.

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