There has been an increase in people looking to use a new tactic to avoid their pension wealth being subjected to high inheritance tax (IHT) after their death, experts say.
This is ahead of pension wealth being dragged into the IHT net as of next April.
Experts say more parents are asking whether they could use a lifetime annuity, which provides a guaranteed income for life, to pass on their wealth to an adult child after their passing.
It would avoid the usual high inheritance tax bill for recipients, although it is currently an option only offered by two providers and there are several risks to be aware of.
Here’s what you need to know.
