Pension inheritance

shivscape

So I have a question about inheriting an old workplace pension. this may be in the wrong thread but I can't find an inheritance section of the forum.


Story:

My Uncle has recently been diagnosed with cancer, and we've advised him to create a will so that his pension (he has no other assets) can be inherited by his daughters (currently 13 and 18 yrs old). Is it possible to simply bequeath the pension in the will to the daughters and not have any inheritance tax or pension charges paid on it? there's only about £40,000 in there or so so inheritance tax would be unlikely I know.

dunstonh

this may be in the wrong thread but I can't find an inheritance section of the forum.

Pensions do not form part of an inheritance. So, this is the right place to talk about pensions.

and we've advised him to create a will so that his pension (he has no other assets) can be inherited by his daughters (currently 13 and 18 yrs old).

Pensions are outside of the estate and not subject to the Will.

Is it possible to simply bequeath the pension in the will to the daughters and not have any inheritance tax or pension charges paid on it?

Pensions are not subject to inheritance tax.
There are not normally any charges on death. Why do you think there would be?

He should make a expression of wish to the pension provider. Many providers have the form on their website. If not, he can ask them to send him one. Or if he has an IFA, they can get it. Or he can just put his wish in writing stating who the beneficiaries are (name, date of birth, address and relationship to him).

Malthusian

The pension is not part of his estate and a Will has no effect on how it is distributed.* For the same reason Inheritance Tax does not apply.

He needs to make an Expression of Wish to direct the scheme trustees how the death benefit should be distributed.

Is he over or under 75?

*The only exception is if the scheme administrator, in the absence of any other expression of wish, pays the benefits into the deceased's estate.

shivscape

He is 52 years old. Thanks for the advice everyone. I will advise him to contact his provider to fill in an expression of wish