Pension pot and IHT

Jurgen500

I have a pension pot which i have not yet touched. Its under the lifetime allowance. If i die before i touch it (and my wife has also passed) i intend for my son to be the beneficiary. Will the pot be included in my estate for inheritance tax purposes?

Jurgen500

Sorry, the pot is a defined contribution scheme

Keep_pedalling

Not under the current rules.

Daniel54

Assuming you have already made an expression of wishes to the trustees that the pension should go to your wife, then it is easy to amend this to state that the proceeds should go to your son if you are pre-deceased by your wife.

Robert_McGeddon

Should be outside IHT, however:

1  If paid as a lump sum will become part of the estate of your wife/son and perhaps be subject to IHT when they die as well as IT on income generated during lifetime.

2  If a modern scheme transfer into a successor scheme in the name of your wife/son should be possible. This can be highly beneficial - IF your scheme allows it.

3  Sometimes skipping a generation is beneficial.