Clare Moffat: Why the spousal bypass trust remains a useful planning tool

Death benefits on pensions are usually not liable to inheritance tax (IHT) on the death of a member. Before April 2015, the main reason spousal bypass trusts were set up was so lump-sum death benefits did not become part of the IHT assessable estate of the intended beneficiaries. New legislation introduced by the Taxation of Pensions Act 2014, however, means that, in the vast majority of cases, the benefits are now able to pass down through generations free of IHT - as long as they remain in the pension wrapper. As such, many have said that spousal bypass trusts are no longer required. ...