Transferring Your Wealth Through Generations
Retaining pension wealth within a pension fund and passing it down to future generations is an extremely tax efficient estate planning solution. Changes in legislation allow any nominated individual to inherit a pension fund at any age, regardless of dependency and receive withdrawals, potentially tax free. Also, whilst the funds remain within the pension, they will not be subject to Inheritance Tax (IHT) as they are outside the beneficiary's estate and, in addition, will continue to enjoy tax free growth
Death Benefit Nominations
Legislation regarding death benefit nominations has changed the way we pass on any remaining pension funds on death. This means you should revisit existing death benefit nominations to ensure they still meet your needs and objectives.
Don't forget that a nomination doesn't have to be all or nothing. It's possible to nominate a number of different beneficiaries and even skip a generation with some of the fund.