Bypassing the IHT bills

When retirement planning involves the use of registered pension schemes it is essential that advisers understand how to deal with any lump sum death benefit that may become payable. On the death of a member the pension fund will be distributed from the selected registered pension scheme and allocated by the trustees using guidance from the deceased. A Spousal Bypass Trust offers an opportunity to distribute lump sum death benefits while avoiding a hefty inheritance tax bill in the future. The lifetime allowance (£1.65 million in 2008) means that the benefit values within registered pensio...