Why death benefit nominations just got even more important

LTA removal results in tweaks to rules on death benefits

clock • 3 min read

As we say goodbye to the LTA Lisa Webster explores death benefit nominations and explains why some upcoming technical rule tweaks...

Since pension freedoms came along back in 2015 the death benefits that can be paid from pensions can be considered generous, especially in the scenario where the member dies before age 75. Benefits can be paid tax-free, and if the recipient is a dependant or has been nominated they will have the option of keeping the benefits in the tax-free pension wrapper. So what's changing from April 2024? Thankfully, not as much as we'd feared. Back in July, we had draft legislation making changes to remove the lifetime allowance (LTA). Whilst this was silent on beneficiaries' income, the accom...

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