Pensions and IHT - is gifting the best option?

We now have confirmation that the government is ploughing ahead with its plan to include "unused" defined contribution pension funds in the member's estate on death. Following the tsunami of responses to the consultation, one tweak has been made to the original proposal – it is now the personal representatives who are responsible for paying any inheritance tax (IHT) due on the pension, rather than the pension scheme administrator. As one of my colleagues put it, "they've gone from the worst possible scenario to the second worst".  The response seems to gloss over the fact that most...