Michelle is an award-winning chartered financial planner who holds the designation 'Fellow of the PFS' demonstrating her commitment to maintaining the highest standards of knowledge, ethical conduct, and professional practice. Michelle is also an accredited member of the Society of Later Life advisers. Michelle offers a fully personalised service tailored to each clients individual needs and goals, using an approach that was recognised and honoured by the Women in Financial Advice awards in 2021. Clients working with Michelle can expect a high level of professionalism, integrity and a lasting relationship built on trust and open communication
Death benefit options relate to the different ways your pension value can be distributed to surviving beneficiaries in the event of your death. There are different death benefit options based on the type of pension you have and the specific terms of that pension. You should always consult your (proposed) pension to uncover the details that pertain to your situation.
A surviving beneficiary of your pension is usually your spouse, civil partner, de-facto partner or child (dependant).
You may choose to nominate someone else or a charity – a nominee - to receive your pension payment(s) in the event of your death. In some cases, former partners and spouses may be entitled to the payment(s) if you were still together at a time when you were allowed to accept your pension income.
If you would like to nominate someone as a beneficiary of your pension, you should contact your pension provider and complete a designated form. It’s essential that you keep this form up to date.
We offer a complimentary introduction meeting to understand your existing plans and your financial objectives so that we can offer you the right advice and service that meets your objectives and your preferences.
Pension death benefits can be paid out in different ways. The money is typically paid out as a lump sum or as an annuity. If the death benefit pays out in a lump sum, the beneficiaries will receive a fixed amount and no further payments will be due.
If you held an annuity, your annuity payments would continue after death to the beneficiaries for a guaranteed period. There may be a shortfall between the original annuity payments and the annuity payments after death, however this depends on specific terms and conditions.
The rules on death benefits can be complex, and you may need support understanding how they work. Moreover, pension scheme holders and their beneficiaries may or may not get the option to decide how pension death benefits are paid out. If you do have options, you should consult with a financial adviser to make the best decision for your family.
Using a trust to distribute pension death benefits is desirable to some people. This is when a trust fund manager takes control of the pension death payments and distributes money to beneficiaries in stages or certain amounts, as directed by the pension holder before death.
You may prefer to use a trust to make payments to beneficiaries if the beneficiary is:
When we tell you about a fee, you will always receive a clear explanation of: The total fee, the advice service it relates to, how it's been calculated, when you need to pay it and your payment options.
There is not usually any inheritance tax to pay on pension death benefit payments. If the pension holder dies before the age of 75, beneficiaries, dependants or nominees will not have to pay income tax on the payments. If the pension holder dies after the age of 75, the beneficiaries, dependants and/or nominees will have to pay income tax on payments at their marginal rate. It could be the case that no income tax is due, and there are strategies to mitigate tax liability.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE ADVICE ON TRUSTS, TAXATION, INHERITANCE TAX PLANNING AND ESTATE PLANNING.
ESTATE PLANNING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
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