Why death benefit nominations just got even more important

LTA removal results in tweaks to rules on death benefits

clock • 3 min read

As we say goodbye to the LTA Lisa Webster explores death benefit nominations and explains why some upcoming technical rule tweaks...

Since pension freedoms came along back in 2015 the death benefits that can be paid from pensions can be considered generous, especially in the scenario where the member dies before age 75. Benefits can be paid tax-free, and if the recipient is a dependant or has been nominated they will have the option of keeping the benefits in the tax-free pension wrapper. So what's changing from April 2024? Thankfully, not as much as we'd feared. Back in July, we had draft legislation making changes to remove the lifetime allowance (LTA). Whilst this was silent on beneficiaries' income, the accom...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Budget Media Watch: Healey to raise tax-free allowance for low-income state pensioners

Budget Media Watch: Healey to raise tax-free allowance for low-income state pensioners

Not expected to tinker with tax-free lump sum

Jen Frost
clock 26 October 2026 • 2 min read
Mind the gap: Why advisers have a key role in closing the gender pension divide

Mind the gap: Why advisers have a key role in closing the gender pension divide

'While access to pensions has improved, barriers remain'

Julia Peake
clock 22 October 2026 • 5 min read
Planning points: Paying pension funds to charity on death

Planning points: Paying pension funds to charity on death

IHT on pensions may create opportunities for charitable giving

Martin Jones
clock 16 October 2026 • 3 min read