We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Inheritance tax - Filling in Form IHT205 - Definition Question

Options
I'm filling in form IHT205 as I attempt to administer my late father's estate but I've become stuck on one of the questions (so far...)

Q9 Asks:

Was the deceased a member of a pension scheme or did they have a personal pension policy from which, in either case, they had not taken their full retirement benefits before the date of death?

What does "Taken full retirement benefits" actually mean? Dad had an income drawdown arrangement from a SIPP which still had money in it when he died - does this mean he hadn't taken his full retirement benefits?

Thanks in advance for any advice,

Comments

  • SeniorSam
    SeniorSam Posts: 1,673 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Matt-P wrote: »
    I'm filling in form IHT205 as I attempt to administer my late father's estate but I've become stuck on one of the questions (so far...)

    Q9 Asks:

    Was the deceased a member of a pension scheme or did they have a personal pension policy from which, in either case, they had not taken their full retirement benefits before the date of death?

    What does "Taken full retirement benefits" actually mean? Dad had an income drawdown arrangement from a SIPP which still had money in it when he died - does this mean he hadn't taken his full retirement benefits?

    Thanks in advance for any advice,



    Hi Matt-P

    The question means that they wish to know obout assets that are in the SIPP, that will pass on to others. Although the SIPP will be in Trust, the remaining vcalue is part of your fathers estate. You will need a pension statement to send with the submission.

    Hope this helps

    Sam
    I'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.
  • Cheers Sam, much appreciated
  • I don't want to pass on my own confusion and muddy the waters further; so I will ask this in the form of questions?.
    As "dad" was using "drawdown" as an alternative to buying an annuity - can we take it that dad was younger than 75 ?
    As the pension fund is "in trust" does it form part of the estate administered by the will/intestacy or could "dad" have expressed other wishes for the distribution of the fund?
    As IHT 205 is the form being completed, presumably the value of the estate is below the single person nil rate band so InHeritance Tax is not an issue ( and the exact valuations will receive only perfunctory attention) ?
  • Hi John, thanks for the assistance. In answer to your questions:
    1) Dad was under 75 when he died
    2) Part of the reason for a drawdown was that he wanted it to be passed to my mum if he died. She is still alive and the will leaves everything to her.
    3) The value of the estate is below the threshold
    Cheers
    Matt
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.7K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.4K Spending & Discounts
  • 243.7K Work, Benefits & Business
  • 598.5K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 256.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.