Trust on Pension Death Benefits

Hi Quick question on pension death benefits.

Can someone over 75 set up a Trust for death benefits on a pension so that the beneficiaries do not have to pay income tax.after death.

I would imagine the answer is no otherwise everyone would do it.

thanks in advance.

Comments

  • SA96SA96 Member

    No.

    If the pension gets paid out to a discretionary trust after 75, income tax at 45% would be payable.

  • benjaminfabibenjaminfabi Moderator

    But note that when paid on to an individual beneficiary, it can carry a 45% tax credit.

    Pru has a good technical article on this.

    Benjamin Fabi FPFS
    Chartered Financial Planner
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