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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

What might be in store for pensions under a Burnham premiership?

What might be in store for pensions under a Burnham premiership?

'My first hope for pensions under Burnham is stability and medium-term planning'

Andrew Tully
clock 20 July 2026 • 4 min read
Everything advisers need to know on MEES regulations and pensions

Everything advisers need to know on MEES regulations and pensions

'Commercial property still remains a highly attractive and favourable investment for the right client'

Caitlin Southall
clock 14 July 2026 • 4 min read
Retirees feel regret after rushing to take out tax-free cash

Retirees feel regret after rushing to take out tax-free cash

Chancellor urged to provide earlier clarity ahead of 2026 budget

Isabel Baxter
clock 02 July 2026 • 3 min read