FINANCE UPDATES – Sep 2019 – Pensions and Passing on Wealth
When pension freedoms were introduced back in April 2015, new
inheritance tax planning rules slipped under the radar for some.
While over-55s were presented with much more choice when
it comes to flexibly accessing their pension pots, passing
retirement savings on became less punitive.
Before the freedoms came in, savers could only pass on their
defined contribution pension tax-free if they were under 75
and the pension funds were untouched.
For those who were over the age of 75 and had started to access
their retirement savings, a 55% “death tax” would be applied to
pensions passed on at death.
Finance Update – Pensions and Passing on Wealth