Pension triviality rules

wakeupalarm

Would a widow(less then 75 years old) receiving a state pension with a stakeholder pension fund of £3,600 who is now receiving half her husbands [SIZE=-1]occupational pension [/SIZE] of £4000 per annum qualify under the less then £15000 triviality rules and be allowed to take all of the fund as a lump sum or does her husbands pension now mean she is ineligible?

If she is allowed, can she top up the stakeholder fund to £7,200 in the current tax year before taking the lump sum?

seven-day-weekend

don't know the answer but will BUMP so that someone who does sees it!

oddiZ

http://www.pensionsadvisoryservice.org.uk/personal_and_stakeholder_pensions/triviality/

EdInvestor

wakeupalarm wrote: »

Would a widow(less then 75 years old) receiving a state pension with a stakeholder pension fund of £3,600 who is now receiving half her husbands [SIZE=-1]occupational pension [/SIZE] of £4000 per annum qualify under the less then £15000 triviality rules and be allowed to take all of the fund as a lump sum

I would think yes, as it's her only non state pension.

or does her husbands pension now mean she is ineligible?

This money is from his pension, not hers, so can't see that it would be counted.

If she is allowed, can she top up the stakeholder fund to £7,200 in the current tax year before taking the lump sum?

Yes.

Check this with the company where she has the stakeholder pension (or ring TPAS, link above).

oddiZ

EdInvestor wrote: »

This money is from his pension, not hers, so can't see that it would be counted.).

Thats the crunch question, is it her pension or her deceaseds husbands?

I reckon you need to look for a legal definition, personally I think it's hers as once your dead you own nothing.

mad_bad_spender

her husbands pension does not count towards the amount as that is his lifetime allowance not hers. it only counts as a taxable income for her