Tax advice on inheritance please

[blindswelledrat]

Hello,

I am currently executing a will and I have come across something that I don't know/understand.
A modest pension plan is one of the items that was left.
The pension company has authorised the 'lump sum draw down' and have said they will make 4 proportional payments to the beneficiaries.
Each of those payments has been taxes at an emergency tax rate of 30% (or 33% -cant remember)

My understanding was that when this pension paid out, the deceased would have to pay tax on the amount as though she had earned it in that tax year.
Is this correct?
Assuming so, does that mean I would now have to do a tax-return for the deceased to re-claim the excess tax?
Or what?
Im a bit confused. I assumed I would pay any relevant tax after the estate was all finalised rather than bits of it being deducted at source.

[Tiggsy]

Probably that the pension fund will go from pension provider to beneficiary with no impact on the estate of the deceased - its not in their estate as a pension fund.

They tax it at source as that what the HMRC do for draw downs as they have no means of knowing its not a regular payment and not a one off - they should be able to direct you to the right form for them to use to get the tax deducted at source back.

[PurpleMoonlight]

The pension plan is outside the estate so you have nothing to do in that respect.

[STattam]

Has this been referred to by the provider as a flexi access drawdown?

[blindswelledrat]

Thanks all.
No, the word flexi hasn't been used at all.
Where the tax has been deducted- who is that from i.e. does it fall under the deceased's tax affairs or the benificiaries?