Subsequent nominations on an inherited pension

sausage_time

I have the nomination form for my DC pension set to be my spouse.  If I die first, can my spouse then make a separate nomination for our (adult) children?  Are there any tax implications to think about?  In other words, would I be better splitting the nomination between spouse and off-spring now?  

xylophone

https://www.gov.uk/tax-on-pension-death-benefits

Passing on a pension pot you inherited

If you inherit a defined contribution pot you can nominate someone to get any money you do not use before your death. The money must be in a flexi-access drawdown fund when you die.

Marcon

sausage_time said:

I have the nomination form for my DC pension set to be my spouse.  If I die first, can my spouse then make a separate nomination for our (adult) children?  Are there any tax implications to think about?  In other words, would I be better splitting the nomination between spouse and off-spring now?  

A tax implication you (and your spouse) might wish to consider is the possibility that your spouse takes a lump sum out of the DC pot they inherit from you, doesn't spend it all before they die, and that then becomes part of their estate - and thus potentially subject to IHT. Not a major issue if (a) their estate won't be subject to IHT and/or (b) they don't take out more cash than they need at any particular time.