In this section
Beneficiary flexi-access drawdown
BFAD allows individuals to pass on pension benefits in a manner where the beneficiaries have immediate access to the funds after death, while retaining some of the main advantages of being within a pension arrangement. This includes tax-free growth and favourable IHT treatment.
The BFAD conundrum
Many in the industry argue the changes to the death benefit tax rules applying to money purchase arrangements were amongst the most significant brought about by the 2015 pension freedoms. Fundamental to the new tax rules for death benefits was the introduction of beneficiary flexi-access drawdown (BFAD).
Adviser support package
A host of information is available in your adviser support package.
- A guide to pension death benefit options which provides a simple analysis of the underlying law and the evaluation to follow for each beneficiary
- Two professional guides related to money purchase and defined benefit schemes
- A client-friendly summary explaining the importance of completing an expression of wish.
The Pension Forum
Paul Squirrell, our pension expert, clarifies the rules relating to some specific areas of retirement planning.
Bereavement and planning ahead
Here you’ll find all the information you need in relation to administering an account following the death of a client.