26.1.1 Introduction

Considerable recent changes have occurred that affect how benefits can be taken under a money purchase (defined contribution) pension plan. These changes affect the taxation of death benefits and therefore the inheritance tax (IHT) planning opportunities both when using separate trusts and without using such trusts. In this first section of this chapter we will look at the background to this and then consider the new rules that apply.

26.1.2 Using trusts

As with protection-based life assurance policies, pension plans can be very valuable on death and that means that IHT needs to be considered.

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