Multiple choice Q&A #4
What would your answer be to these questions put to our Technical Support Unit by advisers looking for some clarity on pension flexibility? The right answers are found at the bottom of this post.
1. Member had a carve out by-pass trust in place prior to 6 April 2015. Which one of these options could they take?
a. They have no options, benefits must be paid to trust
b. They can revoke the trust
c. In most circumstances a nomination by member will take priority over trust
d. Trust needs revoked and member provides nomination
2. Member has two children A & B. He is concerned that child A is a spend thrift and would squander their share of the pension if passed on. What option would you recommend?
a. Nominate child B with request they control access
b. Nominate both with the provision that access to A’s share restricted
c. Split nomination with A’s share going into trust
d. Nominate all benefits go into trust