pension tax on death 2

https://april2027taxchangesplus.halcyonledger.com/posts/april-2027-tax-changes-what-they-mean-for-your-pension-and-inheritance-plans

When someone with a pension dies, their beneficiaries often face a tax hit depending on the plan type and whether the deceased was over 75. For defined contribution pensions, benefits paid before age 75 are usually tax-free, but after that, beneficiaries pay income tax at their marginal rate. Defined benefit schemes often pay lump sums or survivor benefits with different rules. It’s one of those tricky areas where planning ahead can save your loved ones a hefty bill, since HMRC takes a slice un…