Pension and life policy lump sum death benefits protection

If you are paying into a pension or life insurance scheme and want to ensure that after you are gone your loved ones will be able to access the funds without the headache of Inheritance Tax, or having to wait for a grant of probate, call the experienced team at JMW on 0845 872 6666

Schemes and trusts

Many of us are entitled to a lump sum payout if we die whilst still employed through a death in service scheme with our employers.  It is possible to nominate this payment to be made to a specific person or to a trust on behalf of several people, even those who may not yet be alive, without any Inheritance Tax being paid on the payment. 

This type of trust is often referred to as a Spousal-Bypass Trust by financial advisers as it ensures that whilst your spouse can still benefit from the funds, they do not form part of their estate for Inheritance Tax. As well as helping to save tax, a trust can:

  • Ensure that money passes to your family and friends at an appropriate time 
  • Ensure the trustees can use the funds directly for the benefit of your beneficiaries

If you have not made a nomination in relation to the payment of your death in service benefits, then the value could form part of your estate and, as well as being subject to Inheritance Tax, there would be a delay in your loved ones getting the money at a time when they need it most.

Get in touch

The private client team at JMW has helped hundreds of clients to ensure that if the worst happens their loved ones will receive all of the money from their pension and life insurance policies tax-free, without having to wait for a grant of probate to be issued. Contact the caring solicitors at JMW on 0345 872 6666 who will help you get that peace of mind. You can also complete the online contact form on this page and we will get back to you.

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