One of the most significant changes to pension legislation was enacted in April 2015, which removed the tax charge on any pension assets that an individual hold, when passed on to their beneficiaries post death.

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In addition, provided the pension assets remain inside a registered pension scheme, the value of these assets will continue to be free of inheritance tax, and continue to grow in a tax free environment.

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The legislation also changed the way that the inherited assets are treated from an income tax perspective, an aspect that requires careful planning and consideration.

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The way that the inherited assets are treated depends on the age at death of the member.

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If a member dies before the age of 75, then the assets passed on inside the SSAS will be available as either income or cash, totally tax free to the beneficiaries. Where the beneficiaries are under the age of 55 they will be able to access these benefits immediately if required. Any inherited benefits do not count towards an individual’s lifetime allowance.

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Where the member dies after the age of 75 then any assets inherited inside the SSAS by the beneficiaries will still be accessible, however any amounts withdrawn will be subject to income tax at their highest marginal rate.

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Members of the SSAS will need to consider very carefully to whom they leave their pension assets, and how much. As the SSAS is a trust, clear instructions need to be left with the trustees, and we would recommend that your letter of wishes be drafted by an experienced solicitor.

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SSAS is the ultimate pension planning vehicle for the family. It allows everyone to be a member, providing maximum investment flexibility and all available options to draw benefits at retirement. The unique structure of SSAS also allows members benefits to be passed on in the most tax efficient way possible in the UK today.

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SSAS truly allows you to cascade the wealth down the generations.