Check Paperwork to Avoid Paying Unnecessary Tax
Posted by siteadmin on Thursday 26th of November 2015.
Our senior pension specialists are checking pensions which were written under previous tax rules. In short, the new flexible pension drawdown rules mean you can leave money, free of inheritance tax, to your children, providing you check and update your paperwork in good time.
If your children or other beneficiaries aren’t mentioned in the correct part of your pension papers, they’ll miss out on this tax efficiency because, when you pass away, they could be faced with a hefty tax bill.
Checking your pension papers
Your beneficiaries need to be named in the right place in your death benefit nomination form, which is also sometimes called an expression of wishes. If your pension papers were completed some time ago, they would have been written under old tax rules and there’s a likelihood that your beneficiaries will not have been named. If your papers are not amended, your beneficiaries may be liable for paying unnecessary tax.
This paperwork is complicated, so we advise against trying to do it online. Call us on 01908 226400 or email firstname.lastname@example.org for advice on how to align your papers so your beneficiaries don’t pay unnecessary tax in the future.
Tax treatment varies according to individual circumstances and is subject to change.
The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.