Commentary

I12.1002 Pension scheme benefits

IHT, trusts and estates

I12.1002 Pension scheme benefits

I12.1002 Pension scheme benefits

Normally, an approved company pension scheme will provide for the payment of a lump sum (often four times final salary) on death before retirement. Usually a discretion will be conferred upon the trustee (the company) to pay the monies to the employee's dependants as requested by him in a letter of wishes. HMRC have confirmed that, in relation to approved funds they will not seek to tax as part of the deceased's estate, benefits distributable 'after death under a discretionary trust'.

The failure of the employee to indicate how the monies might be distributed usually leads to

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