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Tax payable from deceased persons pot

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  • Tax payable from deceased persons pot

    Just thinking aloud and wondering what tax would be payable from a deceased persons drawdown pension pot before the pot gets passed onto beneficiaries.
    if the drawdown pot remains at 150,000 after the 25% tax free lump of 50,000 had already been taken would the tax due on the 150,000 be taken at source and before being released to the estate?
    Assuming the deceased persons OAP benefit pension would have ordinarily been utilised, my assumption is the first 37,700 would be subject to 20% tax, the next 87,440 40% tax and the remaining 24,860 the additional tax rate at 45%.
    I also believe that if the deceased is under 75 years of age, the balance after tax from the pot would not be added to the further estate Inheritance Tax. If the deceased was 75 and older then it would be added to the estate Inheritance Tax calculator.
    Do you believe my understanding is correct?
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  • #2
    This is a case for specialist advice.
    Lawyer (solicitor) - retired from practice, now supervising solicitor in a university law clinic. I do not advise by private message.

    Litigants in Person should download and read this: https://www.judiciary.uk/wp-content/..._in_Person.pdf


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