The government’s move to make personal representatives responsible for settling Inheritance Tax on unused pension benefits is a positive development—particularly for solicitors who will no longer have to deal directly with pension administrators about calculating the payment split.
The risk of double taxation still remains. Beneficiaries could still face both Inheritance Tax and income tax, with combined charges potentially reaching up to 67%, depending on circumstances.
For clients with significant pension wealth, this reinforces the importance of joined-up estate and retirement planning.
For more information, see the government’s policy paper here:
https://www.gov.uk/government/publications/reforming-inheritance-tax-unused-pension-funds-and-death-benefits/inheritance-tax-on-unused-pension-funds-and-death-benefits
#InheritanceTax #Pensions #EstateAdministration #FinancialPlanning #IHT #PrivateClient #UKLaw
I am a Certified and Chartered Financial Planner with over 12 years' experience in wealth management. I am committed to helping individuals and families secure their financial futures. I provide…
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