What Happens to Unused Pensions?

What Happens to Your Pension When You Die? Inheritance Tax 2027 Could your family face a bigger Inheritance Tax bill, and should your beneficiaries cash in your Pension or keep it invested? Major changes to UK Pension Inheritance Tax rules mean that, from 6 April 2027, most unused Pension funds and certain Pension death benefits will be included in your Estate for Inheritance Tax purposes. These changes could affect how much your loved ones inherit, the responsibilities of your Executors and the decisions beneficiaries need to make about inherited Pensions. In this short video, Jasmine Lambert, Managing Director and Chartered Financial Planner at Redwood Financial, explains what's changing and why planning ahead matters. In this video, discover: - What happens to your unused Pension when you die after April 2027. - How the new Pension Inheritance Tax rules could affect your Estate and beneficiaries. - Why administering an Estate could become more complicated for Executors. - The importance of keeping your Will, Trusts and Pension beneficiary nominations up to date. - Whether beneficiaries should withdraw an inherited Pension or consider a Beneficiary Drawdown Pension. - How dying before or after age 75 can affect the Income Tax treatment of inherited Pensions. - Why joined-up Financial Planning and Estate Planning advice is increasingly important. Should your beneficiaries cash in your Pension when you die? Not necessarily. Depending on the Pension scheme and your beneficiaries' individual circumstances, keeping inherited funds within a Beneficiary Drawdown Pension may offer valuable flexibility. The right decision depends on your family's needs, their tax position and the wider value of your Estate. Acting without advice could have unintended financial consequences. Protect your wealth. Make life easier for your loved ones. At Redwood Financial, our Chartered Financial Planners and Estate Planners work together to help families Grow, Protect & Enjoy their wealth. We're a family-owned firm based in Hampshire, with over 20 years' experience helping clients with Pensions, Retirement Planning, Wills, Trusts and Inheritance Tax Planning. Want to understand how the new rules could affect your family? Visit our website: https://redwoodfinancial.co.uk/ Explore our free, on-demand webinars covering Wills, Trusts & Estate Planning and Inheritance Tax Planning. VIDEO CHAPTERS 00:00 What Happens to Your Unused Pension After April 2027? 00:30 New Pension Inheritance Tax Rules Explained 01:02 What the Changes Mean for Executors 01:20 Wills, Trusts and Pension Beneficiary Nominations 01:45 Should You Cash In an Inherited Pension? 02:19 Inherited Pension Tax: Death Before or After Age 75 02:49 Why Professional Financial Advice Matters This video provides general information only and does not constitute personalised financial or tax advice. Tax treatment depends on individual circumstances and may change. #InheritanceTax #PensionInheritanceTax #Pensions2027 #EstatePlanning #InheritedPension #RetirementPlanning