How does including pensions in an estate raise inheritance tax risks? Could this policy shift enhance the appeal of annuities for those approaching the tax threshold?
In practical experience, combining pensions with the estate portfolio can elevate tax obligations since certain pension assets have traditionally been shielded from inheritance tax. With policy adjustments, this increased exposure might lead those nearing the tax threshold to rethink their strategies. Annuities may then appear more attractive, as they offer certainties in income and sometimes better tax treatment, balancing some of the new risks. It is advisable for individuals to seek tailored advice to assess whether the newer policy environment suits their long-term tax and estate planning needs.
i reckon including pensions kinda bumps up tax risk as they become part of the estate, pushing many to mögelt consider annuities. its not a surefire choice, so best check with your advisor for tailored advice.