Inheritance tax - Filling in Form IHT205 - Definition Question

edited 30 November -1 at 1:00AM in Cutting Tax
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Matt-P_2Matt-P_2 Forumite
3 Posts
edited 30 November -1 at 1:00AM in Cutting Tax
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,

Replies

  • SeniorSamSeniorSam Forumite
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    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, so my comments are just meant to be helpful.
  • Cheers Sam, much appreciated
  • John_PierpointJohn_Pierpoint Forumite
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    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
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