Pension transfers by those in ill-health

KEY POINTS

• Pension transfers and withdrawals are becoming increasingly common.
• Transfers by an individual in ill health may raise the suspicion that the transfer was to improve the financial position of a beneficiary.
• Personal representatives will in most cases need to report pension transfers made within two years of an individual’s death.
• No transfer of value arises if there was no intention to confer a gratuitous benefit.
• It is important to know how to calculate the value of a transfer in the cases that are caught.
• Complications can arise if the fund alone or with other funds exceeds the lifetime allowance.

Pension transfers are seldom out of the personal finance columns at present. Since the introduction of pensions flexibility many of these transfers are...