Pension Trusts - Asset Preservation Trust

dunstonh

Bostonerimus1 said:

What type of pensions are we talking about here? Define benefit with some beneficiary benefit of defined contribution. In any event your IFA seems to be reacting to rumours and mis-information at the worst and prematurely at best regarding IHT and pensions. They don't sound very knowledgeable or prudent.

The OP says FA, not IFA.       I wouldn't be surprised if it was a "saintly" FA as they seem to put most of their stuff in trust to try and keep IFAs away.  Not for the actual investor to benefit.

poseidon1

NedS said:

Do you plan on drawing an income from these pensions once in a trust, and will your daughter intend to draw an income from the trust once they become the beneficiary? Many trusts require high rates of tax to be paid by the trust before any income is distrusted to the trust beneficiaries.

https://www.gov.uk/trusts-taxes

Even if you are able to avoid IHT, you may find that other taxes and fees are more than the IHT you have potentially avoided. So is your intention to pay less tax overall, or just to avoid IHT at any cost?

The nature of a pilot trust is that it does not exsist until after mum dies.  Assuming all the pension pots are DC schemes , there is no active trust whilst mum is drawing on the pensions for her own benefit.

 If any are DB schemes however, there may not be the ability to redirect death benefits to a  pilot trust, those schemes may only provide for dependents' pensions.

Since the OP is a widow, notwithstanding the tax complexities of trusts after her death,  they may have an important role to play to protect the vulnerable child during her minority .

A STEP qualified solicitor can discuss to what extent protection of the child's financial future via trusts, is consistent with IHT avoidance rules that exsist now. It will be a discussion to be revisited when the precise terms of the proposed 2027 pension IHT legislation is known, and how it impacts on  her various pension schemes at that time. 

squirrelpie

And if you use a financial advisor for anything in future, please make sure they are an Independent Financial Adviser (IFA)

Willeri

Short answer is No not a good idea. APTs mis selling is the next PPI 

Bostonerimus1

dunstonh said:

Bostonerimus1 said:

What type of pensions are we talking about here? Define benefit with some beneficiary benefit of defined contribution. In any event your IFA seems to be reacting to rumours and mis-information at the worst and prematurely at best regarding IHT and pensions. They don't sound very knowledgeable or prudent.

The OP says FA, not IFA.       I wouldn't be surprised if it was a "saintly" FA as they seem to put most of their stuff in trust to try and keep IFAs away.  Not for the actual investor to benefit.

I apologize for saying IFA.