Death in Service Life Assurance: Ensure Your Family’s Financial Security
What Is Death in Service Life Assurance?
To access this benefit, you need to:
- Be employed by the company at the time of your passing.
- Ensure your employer has your nominated beneficiaries listed and up to date.
- Be employed by the company at the time of your passing.
- Ensure your employer has your nominated beneficiaries listed and up to date.
Tax Implications
Income Tax
Inheritance Tax (IHT)
If not placed in a trust, the benefit could form part of your estate, potentially attracting IHT if your estate exceeds the nil-rate band.
Proposed IHT Changes
Proposed changes from 2027 suggest that Death in Service benefits might be subject to IHT even when held in trust. This highlights the importance of ongoing review and advice.
Why Seek Professional Advice
At the Inheritance Planning Company, we help clients:
Set Up a Trust
Ensure your Death in Service benefit is protected from IHT and distributed according to your wishes.
Review Beneficiary Nominations
Integrate with Your Estate Plan
How Trusts can protect your Death in Service Benefits
Ensure your death in service life assurance benefits reach your loved ones securely and tax-efficiently. Setting up a trust provides creditor protection, preserves tax benefits, and allows immediate fund access.
Why Is Death in Service Life Assurance Important?
Recent Updates
- Removal of Lifetime Allowance (LTA):
- As of 2023, the removal of the LTA charge impacts how Death in Service benefits interact with pension savings, particularly for high earners.
- Flexible Nominations:
- Employers now often offer options for splitting benefits among multiple beneficiaries, which can align with your family’s needs.
- Proposed IHT Revisions:
- With possible IHT changes on the horizon, proactive estate planning is more critical than ever to safeguard your assets.
Don’t leave your family’s financial future to chance. Contact us today to learn how to optimise your Death in Service Life Assurance benefit as part of a comprehensive estate plan.
Contact us for a free consultation
Protect your death in service life assurance benefits and ensure they reach your intended beneficiaries. Contact us today for a free consultation.
Need to set up a trust for death in service benefits? Contact us today to explore your options.