Posted: Apr 10, 2017
It may sound strange, but your pension could be the last thing you should draw on in retirement.
Over the last five tax years the amount paid in inheritance tax (IHT), nearly all of which is collected on death, has risen by over 70%. However, there is one area where the IHT rules have become noticeably more favourable pensions.
A range of reforms has made defined contribution (money purchase) pensions, such as personal pensions, a valuable tool in estate planning. The broad rules are now:
• Pension death benefits are generally free of IHT.