Protecting your pension benefits for your loved ones

If you would like to protect your pension from tax over the long term so that it is safeguarded in circumstances such as bankruptcy or divorce of a family member, you should consider setting up a Trust* specifically designed to receive death benefits from pension schemes.

Any pensions you may have are designed to provide an income in retirement but can also provide valuable benefits for your dependants should you die either while working or before you reach age 75.

This can represent a significant sum of money.

For obvious practical reasons, you may have chosen to have these benefits paid to your spouse, civil partner or partner ('survivor') however the resulting proceeds would then form part of their estate.

On death this could potentially create or increase a liability to Inheritance Tax (IHT) which could result in a loss of up to 40%.

Other causes may result in 100% of your death benefits disappearing.

We can offer you access to our exclusive Asset Preservation Trust.

The Asset Preservation Trust is specifically designed to avoid some of the worst problems that can arise.

This useful tool is not suitable for everyone so a thorough review of your circumstances would be required.

The levels and bases of taxation and reliefs from taxation can change at any time.

The value of any tax relief depends on individual circumstances.

*Please note that Trusts are not regulated by the Financial Conduct Authority.

Got a question?

If you would like to speak to us about a particular issue or wish to find out more about the specialist advice services we offer around tax, please get in touch.