There has been much in the press recently about wealthy, and the not so wealthy, cashing in their final salary pension schemes because of the potential for saving inheritance tax.
A final salary pension scheme person will probably find on his death that his spouse will enjoy a good pension but then on her death all is gone. If that final pension scheme person, before he retires, decides to cash in he will receive a large capital sum in a pension pot which confers the power to benefit the next generation. Different rules apply depending upon whether the pensioner dies before or after the age of 75.
Those who are contemplating this choice can clearly afford sound advice on weighing up all of the pros and cons. It is not a decision to be made lightly.
Ideally the decision should be made as part of a careful estate planning exercise having regard not only to pensions but also to the remaining assets in the estate.
Contact Probate Lawyers - Pensions & Inheritance Solicitors London
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