Pension Trusts

If you have a large pension plan it may be advantageous to put it into trust.

Pension Trusts If you have a personal pension, and die before reaching pensionable age, there will be death benefit payable, which is generally the value of the pension pot that you have paid into. Unless you specify otherwise, that money will be paid to your estate. Here it may be subject to the sometimes slow probate process, reduced by Inheritance Tax and distributed according to the terms of your Will, or if you have none, the rules set out by law which can be quite inflexible. It is possible to nominate that an individual, for example your spouse or partner, should receive the benefit, but there are times when even that is not ideal.  Your partner may not want or need the money, it might not get used how you would like, or even end up in the hands of their new partner! This is where pension trusts can be very helpful and flexible. You can:
  • specify who should control the money
  • set out who is to be considered a beneficiary
  • offer guidance about how the funds can be used
  • protect the funds from Inheritance Tax on your, or your partner’s death
  • protect the funds against misuse by a beneficiary
Barchester Green Investment in Brighton offer a specialised pension trust arrangement service in partnership with Mayo Wynne Baxter. Please get in touch for more details.