What happens to your pension when you die
Could you pass your pension on tax free when you die?
Anyone can inherit what’s left in your pension when you die, usually free of inheritance tax. Your pension can even be passed on completely tax free in some cases.
This factsheet explains:
- How pension wealth can be passed on to loved ones on death
- How those with joint life annuities could benefit
- What choices your beneficiaries might have
This factsheet is not personal advice. It is based on our understanding of current pension and tax legislation, which is subject to change and will depend on your circumstances. Tax charges could be payable if the lifetime allowance of £1,055,000 (2019/20) is exceeded. You should not take, or refrain from taking, any action based solely on this factsheet. If you’re at all unsure please seek personal advice. We offer an award-winning advisory service that can help you achieve your goals.