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Introduction

The amendments introduced in the Taxation of Pensions Act 2014 provide that a dependant can receive a dependants’ flexi-access drawdown pension, a nominee can receive a nominees’ flexi-access drawdown pension and a successor, a successors’ flexi-access drawdown pension.

The operation of flexi-access drawdown means that a successor or nominee can take as much as or as little income from the fund as they wish. They could literally take zero or equally literally take all of it in one go. Tax considerations may determine the choice made as much as need.

Thus we are seeing radical changes about who is able to inherit defined contribution pension funds.

Cascading pensions wealth

The ability to pass on pension wealth after death from one person to another is indefinite, at least as long as there remains a pension fund with a value.

The nominated beneficiary can nominate their own successor who will take over the fund following their death. As a successor can now nominate a further successor,