Transferring From DB Scheme to Drawdown Who's Best?

wjr4

Aegis wrote: »

I've seen a number of cases this year where the transfer looked very much in the client's interest, and I have yet to advise someone in this parfticular field where they have severely limited life expectancy.

Also, remembering that if death occurs within 2 years of transferring out, the pension MAY be taken into account for IHT purposes.

Aegis

Indeed - definitely a concern, though those clients may still be best transferring, as 60% of the transfer value of a DB scheme is likely to be more than 2 years of net income plus the PCLS. Again, would need to be considered on a case by case basis with particular reference to the confidence level of their diagnosis.

jamesd

wjr4 wrote: »

Also, remembering that if death occurs within 2 years of transferring out, the pension MAY be taken into account for IHT purposes.

Assuming there's a spouse, directing the trustees to pay her to get the spousal inheritance tax exemption would be my likely inclination. Then switch to nomination and discretion after the two years.