The
Arnold Case takes a slightly different angle and concerns the situation where
the individual already had a pension plan in trust, but failed to take benefits
when knowing she was in ill health and in fact subsequently died.
The
case is quite complex and involves a number of different aspects of pension
planning, trusts, and retirement. However one issue was the election by Mrs
Arnold at the time she started the plan of a normal retirement date (in this
case 60). It was the election of this
date and her failure to respond to “wake up” letters from the pension provider
that was a key element in the judge in the case finding against her and in
favour of the Inland Revenue and an additional £89,850 added to her estate,
subsequently taxed at 40%.
This
set of circumstances is not unique; in fact it occurs more frequently than one
might expect. There may be some merit
therefore, where a normal retirement date has been selected on setting up a
pension, in asking the pension provider to adjust that selected retirement date
to 75.
This item is posted only to make readers aware of important issues that might affect their finances. It is generic in nature and as it does not take account of personal circumstances it cannot and must not be treated as advice. You should consult your financial planner, IFA, solicitor or accountant before taking any action. Be aware that taking action on this or any financial matter may have an impact, either negative or positive, on other elements of your financial architecture.
