Govt should scrap provider death benefit discretion - AJ Bell

The platform and pension provider has written to Chancellor Philip Hammond urging him to act on the issue. Under the existing rules, pension death benefits are exempt from IHT in most cases because the provider has discretion around who they are paid to. AJ Bell research found that just 7% of people understood how their pension funds would be treated on death. The provider argued that if the majority did not understand the process, they may not know who will receive their pension death benefits or how they would be taxed. It pointed out providers are obliged to consider all potenti...