Pass­ing on your pen­sion

One of the big changes in re­cent years to pen­sion rules is the way that un­spent pen­sion sav­ings can be passed down to your heirs. Carl Lamb looks at what the rules say

EDP Norfolk - - YOUR MONEY -

in your will. It is im­por­tant that any­one you wish to in­herit your un­used pen­sion ben­e­fits is spec­i­fied us­ing a pen­sion ben­e­fits nom­i­na­tion form. It is the pen­sion scheme ad­min­is­tra­tor who is re­spon­si­ble for de­ter­min­ing who should re­ceive any ben­e­fits on your death, not your ex­ecu­tors. While a nom­i­na­tion form is not bind­ing on the ad­min­is­tra­tor, it will give him or her the nec­es­sary guid­ance.

It’s worth not­ing that if ben­e­fits are taken as a draw­down pen­sion, the ben­e­fi­ciary can then, in turn, pass them on again to his or her nom­i­nated ben­e­fi­cia­ries on death if there is still un­spent money in the pot. The value of an in­vest­ment and the in­come from it could go down as well as up. The re­turn at the end of the in­vest­ment pe­riod is not guar­an­teed and you may get back less than you orig­i­nally in­vested. The tax treat­ment of in­vest­ments de­pends on in­di­vid­ual cir­cum­stances and is sub­ject to change.

For in­de­pen­dent ad­vice, con­tact Al­mary Green on 01603 706740 or email en­quiries@al­mary­green.com. Please re­mem­ber that the guid­ance here is generic and we rec­om­mend that you get in­di­vid­ual per­son­alised ad­vice. al­mary­green.com

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