What happen to my fund(s) when I die?

Any chosen beneficiaries can inherit your remaining pension fund should you pass away with your fund in Pension Drawdown. They have a number of choices as to how they access it and will pay varying amounts of tax depending on what they choose to do.

We've included a summary below of the options your beneficiaries have and the way they will be taxed on these options. Your beneficiaries’ options may differ slightly depending upon your age when you pass away.

The options for your beneficiaries

If you are under 75 when you pass away:

Options: Who can take this option? What tax will they pay?
Take a lump sum Any beneficiaries can take your remaining fund as a lump sum. Tax-free – whether taken as a lump sum or an income.
Continue with Pension Drawdown
Convert to a Pension Annuity

If you are over 75 when you pass away:

Options: Who can take this option? What tax will they pay?
Take a lump sum Any beneficiaries can take your remaining fund as a lump sum.

Subject to 45% tax if taken between 6th April 2015 and 6th April 2016.

Taxed at marginal rate if taken after 6th April 2016.

Continue with Pension Drawdown This will be taxed as income at marginal rate.
Convert to a Pension Annuity This will be taxed as income at marginal rate.

All of the information that we provide is based on our understanding of current tax and pension rules, which can change. For the most current summary of what will happen with your pension drawdown funds after you die, contact the Age Partnership team. The experienced financial advisors of the Age Partnership team will be able to apply the most up-to-date rulings and options to your specific situation – ensuring you and your beneficiaries are fully aware of the circumstances in the event of your death.

The experienced and impartial Age Partnership team will offer completely honest and transparent advice – helping you and your loved ones make plans in this most sensitive situation.

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