Pensions: IHT charges: death benefits cash options
IHTA84/s152 provides that where an annuity becomes payable under:
- a registered pension scheme (IHTM17021),
- a qualifying non-UK pension scheme (IHTM17025), or
- a section 615(3) scheme (IHTM17026).
- a surviving spouse or civil partner or
- a dependant
of the deceased and, under the terms of the scheme, the deceased had the option for the scheme to make a lump sum payment to the personal representatives the deceased is not treated as beneficially entitled to that sum. So there is no amount chargeable to IHT. If there is an option to have a lump sum paid to persons other than the personal representatives, this does not apply.