When you die your Small Self-Administered Scheme (SSAS) can provide benefits to your dependents and beneficiaries.
When you die, your SSAS benefits do not die with you. At the trustees’ discretion, any remaining funds will be passed to the beneficiaries you have nominated. The amount and type of benefits depend on:
- How much remains in the fund
- The age you are when you die
- The options chosen by your beneficiaries
A SSAS provides both you and your beneficiaries with flexibility and choice.
When you set up the SSAS you will be asked to nominate the beneficiaries. On your death, the remaining trustees have the discretion whom they pay benefits to and will be guided by your wishes. Therefore, it’s important that you keep this information up to date to reflect any changes to your circumstances.
Your beneficiaries may choose to take any remaining money as:
- A lump sum
- A combination of both
Your age at the time of death is now the key factor in determining whether your beneficiaries will pay tax on the money they receive:
- If you die before the age of 75, then any money paid to your beneficiaries either as a lump sum or as regular payments will be tax-free
- If you die after 75, payments will attract Income Tax at the beneficiaries’ marginal rates of tax
It’s important to note that the funds held in your SSAS will not form part of your estate, and so will not usually be subject to Inheritance Tax.
If you would like to learn more about how a SSAS can benefit you and your business, please get in touch by completing the form below or calling us on 0800 612 6644.
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