11/27/2023 0 Comments Beneficiary flexi access drawdownIt has never been more important to have a modern flexible pension that will facilitate the full range of death benefit options and to keep death benefit nominations up to date as part of regular client reviews. ![]() It is also crucial that death benefit nomination forms / expression of wish forms are kept up to date as, although not binding, the scheme trustees/administrators will usually follow the member’s wishes. If you have pensions that can’t facilitate the new freedoms, for example older pension plans that don’t give the option of dependant’s/nominee’s drawdown (inherited drawdown), the beneficiaries could find that the only option available to them is annuity purchase or to take a lump sum (which is unlikely to be the most tax efficient method of extraction – the lump sum doesn’t have to be particularly large for at least some of it to be taxed at 40%). It has never been more important to check whether your pension arrangements can be used in the way you would like on death as it may be too late to do anything about it once you have passed away. the facility to pass funds down through the generations via flexi-access drawdown, and the possibility of paying death benefits to a far wider range of beneficiaries – it is important to bear in mind that it may be impossible to make use of these options if the pension plan or scheme doesn’t offer them. ![]() In light of the new pension flexibilities for death benefits – i.e.
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