Of course the value of the relative tax advantages of these two options will be difficult to assess, as will the value of some of the more practical considerations.
In summary, on one level the use and appropriateness of a ‘spousal bypass trust’ with ‘death in service’ benefits has not changed.
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However, the use of ‘spousal bypass trusts’ with accrued pension benefits has changed substantially to lump the two together, therefore giving the same advice in respect of both elements would be a mistake.
Tony Mudd is divisional director for tax and technical support at St James’s Place.
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