Family Pension Death Benefits Trust

A Family Pension Death Benefits Trust is a type of trust that is set up to receive and manage the death benefits of a pension plan for the benefit of the family members. The main purpose of this trust is to provide financial security for the surviving spouse and dependents of the deceased.

The death benefits from a pension plan are usually paid as a lump sum to the beneficiaries, but a Family Pension Death Benefits Trust can help ensure that the funds are managed and used in a tax-efficient manner. This is particularly important for larger pensions, as the death benefits may be subject to inheritance tax.

By placing the death benefits into a trust, the beneficiaries can benefit from the income generated by the trust, while the principal remains protected from creditors, bankruptcy, and divorce proceedings. The trust also allows the beneficiaries to access the funds at their discretion, making it a flexible way of managing the death benefits.

Our Family Pension Death Benefits Trust document empowers you to create a tailored solution that maximises benefits for your beneficiaries. Tailored to your unique needs and objectives, this document explores strategies to minimise taxes, shield funds from creditors, and ensure lasting financial security for your loved ones.