Nominee Flexi-Access Drawdown query
Wildcherry
Member
Hi all,
I was wondering if many people are starting to deal with these types of cases since their 2015 introduction?
I have a case where I need to write a report recommending a £5,000 withdrawal from a Flexi-Access Nominee Drawdown case (tax free as settlor died under age 75). However I am not sure what I am required to provide from a cobs point of view?
In reality it's not really a pension wrapper, as you can't add money to it, you can't replace money coming out of it and it's fully accessible even at the ripe old age of 23! (in this case), so to say it's a retirement fund would be wholly false.
I can list off all the advantages and disadvantages no problem. However, is it a requirement to provide an illustration for this, purely cause it sits within a "pension" wrapper? The provider they are on allows me to go through the motions of generating an illustration, but the output is completely unusable so I assume it's just a systems issue they are unwilling to fix (given how little plans probably exist so far).
Anyone have any experience?
Thanks
Wild
Comments
Hi,
When I've done these before it's a case of providing a letter covering what the good and bad bits are. If you are the adviser firm, then you should be reviewing the plan at least annually as it will be invested and have costs and the client will have ongoing needs.
I wouldn't bother with an illustration. Just a statement to the effect of what you've said above.
It's definitely not a retirement fund as such, but it could be used to fund retirement. It could also fund a house purchase, or anything else the person chooses. Basically, it's an IHT exempt, tax-free (at least for now), unrestricted fund that can be passed down the bloodline, or to any other nominated beneficiary in perpetuity. So, taking money out should generally be avoided unless there are no other options.