I want to ask how the new rules regarding inheritance tax affect those of us who are drawing defined benefit pensions.
My wife and I are both drawing our pensions from the Lloyds Bank defined benefit pension scheme.
In the event of death the scheme will pay a reduced pension to a surviving spouse and we have each completed the usual election form so this happens.
We have made wills, each leaving our estate to the other. My understanding is that this would be regarded as an 'excepted estate' with no IHT payable, albeit the survivor will still need to get a grant of probate in order to be able to deal with savings and investments held in our sole names.
Would the survivor therefore need to get the defined benefit pension valued so that it can be recorded on the probate application?
