ARF Inheritance Tax

One of the big advantages to an Approved Retirement Fund or Approved Minimum Retirement Fund is the option of leaving any unspent funds to your family.

The tax treatment is as follows:

Spouse or Civil Partner – An ARF / AMRF can be passed to a spouse or civil partner without payment of CAT (Inheritance Tax). However, any income the spouse or civil partner subsequently takes from the ARF / AMRF would be assessable for income tax.

A Child under age 21 – benefits payable to a child under 21 are subject to CAT (Inheritance Tax) but not to income tax.

A Child over age 21 – benefits payable to a child over age 21 are subject to a 30% tax rate.

If you have an existing ARF and are unhappy with the lack of advice you are receiving, feel free to contact Joanne as as detailed below; or visit our web page Unhappy with your ARF? to give you some options.