Inheriting a pension

PolicyThere are several ways you can inherit a pension.

1. Your spouse could have included a spouses benefit in their annuity/pension

2. You may be a dependent of the deceased

3. You can inherit an Approved Retirement Fund (ARF).

What happens to my fund if I die? .

One of the main differences between an ARF / AMRF, and an annuity is that with an ARF or AMRF you own your retirement fund.  This means that when you die, you can leave the funds in your ARF or AMRF to your spouse or beneficiaries.

If you leave the funds to your spouse or registered civil partner, they can transfer the funds to an ARF in their name. In all other cases,  the funds pass to your estate. 

Does my estate have to pay tax on death?

If your funds are transferred to an ARF in your spouse or registered civil partner’s name, there is no income tax or capital acquisitions tax (CAT) due.

If you leave your funds to anyone else, they may have to pay income or inheritance tax.

If your estate has to pay tax this may be deducted before the proceeds are paid. 

Making a Will.

If you invest in an ARF then your pension fund is an asset of your estate and you should mention it in your Will.  Remember, it is important to keep an updated schedule of your pension investments in your personal files to ensure assets are distributed efficiently and at minimum cost.

Making a will booklet

How can we help?

Our pension advisors will help you make an informed choice regarding the options you have chosen.  You may need to consider a spouse or partner and what will happen your estate in the event of you predeceasing them.  We can help you fully understand all the options and structure your retirement portfolio to take into account your estate requirements.