DP Pensions Ltd

Death Benefits

In the event of your death, the full value of your pension fund can be used to provide lump sum and/or pension benefits to your spouse, civil partner and other beneficiaries. The trustees of your pension have discretion to select who will receive the benefits, but will take account of any beneficiaries nominated by you in an Expression of Wish. The is an Expression of Wish in the forms to set up your SIPP or SSAS and you can request a form and complete a new one at any time.

Lump sum benefits

If you were under the age of 75 on death, then the lump sum death benefit will be tax free providing that payment is made within 2 years of your death, otherwise it will be taxed at the beneficiary’s marginal rate of income tax. If you were over the age of 75 on death, then the lump sum is taxable at the beneficiary’s marginal rate of income tax.

Pension benefits

Each beneficiary can take their pension through an annuity or Flexi Access Drawdown. If you were under the age of 75 on death, pension payments to a beneficiary will be income tax free if designated within 2 years, otherwise they will be taxed at the recipient’s marginal rate. If you were over 75 on death, then any pension payments will be taxed at the recipient’s marginal rate.

 


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