Is it possible to give away my pension savings to avoid IHT?

Since 2021, there has been a 65% increase in probate taking more than a year to be granted, with people reporting endless telephone waiting times, issues with paperwork being misfiled, or worse, completThe terrain for passing on pension savings has become rockier since the Autumn Budget.ely lost.

One of the biggest perks of defined contribution (DC) pensions is the fact that when you die, any money that you have left – that hasn’t been converted into an annuity – can be passed on to beneficiaries of your choice.

The knowledge that you can pass your hard-earned savings to whoever you wish can provide immense peace of mind – especially if you have health problems or are worried you won’t get the full benefit of your pot yourself.

However, now that the chancellor has confirmed her plans to remove the IHT exemption for pensions from April 2027, many people who have been avoiding spending their pensions are suddenly finding themselves forced to rethink their plans.

So, is it possible to give away a pension to mitigate or reduce your IHT bill?

Jo Summers, partner in our Private Wealth & Tax team chatted to interactive investor on behalf of STEP – Advising Families Across Generations, about just that.

Read the full article, here.