Pensions 'still attractive' for inheritance tax planning

Inheritance tax planning may yet focus on building up a large pension, as an expert has noted such funds remain tax free despite the changes relating to ending the requirement to annuitise at 75.

Those pensions invested in the stock market as a result of the scrapped regulation will not be subject to inheritance levies, but are still liable for a "hefty" 55 per cent state charge, the Financial Times reveals.

Free will writing advice can help individuals ensure loved ones are provided for, as well as facilitating estate administration and making probate easier in the event of an unexpected death.

Laith Khalaf, pensions analyst at Hargreaves Lansdown, notes the funds are not subject to inheritance tax when they are untouched and the holder is under 75, meaning in the event of a death, the sum would be passed on free of charge.

The Inland Revenue recently revealed it is to establish a scheme to discourage inhertiance tax avoidance through the use of trusts, meaning help from a will writing specialist may be important for those hoping to minimise this burden.

Published by Phil Hammond