Key Pension Changes for Private Client Practitioners
Key Subjects
- How Pensions Work Currently
- Changes to IHT Treatment and Implications
- Practical Implications and What Clients Should Do
- How the Changes Will Affect Legal Practices
- Financial Planning
- Will Drafting and NRB Discretionary Trusts
Details
- Choose your venue & date:
- CPD Hours: 6 hours
- Expires after: 120 Days
- £139 Plus VAT
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How Pensions Work Currently
Types of Pensions
- Defined Benefit
- Defined Contribution
- SIPPs
- Lump Sums
- Drawdown
- Annuities
- Tax treatment for pension-holder
- Individuals
- Trusts
- IHT position
- Consequences of nominating, or not, and use of notes of wishes.
- What will pension scheme permit – e.g. will it allow drawdown?
- Accessing funds: lump sum, annuities or drawdown?
- Age of pension-holder at death
Changes to IHT Treatment and Implications
The Process: An Outline
- PRs liable to pay tax 6 months after death
- Budget 2025 changes: 50% retention and discharge from liability for late pension discoveries
- PRs able to direct PSAs to withhold 50% of pension but only for 15-month period
- How will it work? Some do's and don’ts!
Practical Implications and What Clients Should Do
- Consolidate pension pots
- Consider their nominations
- Spending pension funds in preference to other assets
- Withdraw funds and make PETS
- Tax efficient use for recipients
- Exempt gifts from pension funds, IHTA 1984, s21
- Life policies written in trust
How the Changes Will Affect Legal Practices
- The major changes to probate practice needed
- Planning for the 6-month and 15-month deadlines
- Estates that are amended after 15 months
- The place of Clearance after the 2025 Budget changes and PRs ongoing obligations
- Effect on speed and cost of administrations
- Taking pension wealth and nominations into account when drafting wills/estate planning
- Overview of assets required
Financial Planning and Will Drafting
- Income tax and IHT charges combined on deaths of those 75 or over
- Enhanced role for annuities to cover spending and enable gifting
- Pensions and other savings and investment products compared
- What the changes mean to financial planning choices
- Pensions reverting to role of funding retirement
- Life Assurance to meet IHT and cover risks regarding gifts
- Spousal by-pass trusts revisited
- Dealing with investment bonds – issues for PRs and trustees
- Chargeable events
- Bonds continuing after death of first life assured
- Bonds held in trust
- Trusts nominated to receive pension benefits
- Tax issues
- Perpetuity problems
- Will Drafting
- NRB discretionary trusts
£139.00 + VAT
Sponsored by
Speakers
John Bunker
Solicitor, Chartered Tax Advisor and Lecturer
Solicitor, Chartered Tax Adviser and Lecturer
Professor Lesley King
Professional Development Consultant, University of Law
Professional Development Consultant, University of Law
Rebecca Bonner
Independent Financial Adviser, Trigpoint Financial Planning