eaglestorm

As there are no options for QROPS transfers at the moment my question is this

How is the pension pot on a flexi drawdown pension treated that is managed and located in the UK treated on death.

In Canada an RRSP can have a spousal beneficiary so that any tax can be rolled over.

Does the CRA recognise a beneficiary on a UK pension or would they deem the pot to be valued at `fair market value` on the date of death and included in the estate.
Or can she/he be a continuant beneficiary and still receive the pension payments.

JonboyE

To answer I need to know what a Flexi Drawdown Pension is. It did not exist when I left the UK.

eaglestorm

Under the pension freedoms enacted in 2016 you did not have to purchase an annuity with your defined contributions/money purchase pot.
You could leave it invested and either draw none/some/all depending on your circumstances. You could have either fixed drawdown or flexi drawdown. Flexi allows you to withdraw more in your early years of retirement if you so choose.

So my question was how is this pot treated on death. If there is a beneficiary continuant like an RRSP beneficiary can the tax be rolled over or is its deemed value at the date of death form part of the estate here in Canada.

This may be one for an expat or foreign tax lawyer unless you can shed some light on it.

Hurlabrick

It used to be 'Capped Drawdown' or 'Flexible Drawdown' prior to the major changes in 2015.

With Capped DD you could take nothing or a maximum as specified by the Government Actuarial Department (aka GAD maximum), which varied according to gilt yields and was usually between 3 and 5% pa.

If you could prove a minimum guaranteed pension income beyond a specified amount pa (something like 33k IIRC), then you could go into Flexi drawdown, wher you could take how much you wanted in any year.

Since 2015, all DD could be flexi drawdown.

Sorry for the crude generalisation and estimates, but that is roughly correct IMHO.