Flexi-access drawdown fund lump sum death benefit

17A

1

For the purposes of this Part a lump sum death benefit is a flexi-access drawdown fund lump sum death benefit if—

a

it is paid in respect of income withdrawal to which the member was entitled to be paid from the member's flexi-access drawdown fund in respect of an arrangement at the date of the member's death, and

b

it is not a charity lump sum death benefit.

2

A lump sum death benefit is also a flexi-access drawdown fund lump sum death benefit if—

a

it is paid on the death of a dependant of the member,

b

it is paid in respect of dependants' income withdrawal to which the dependant was at the date of the dependant's death entitled to be paid from the dependant's flexi-access drawdown fund in respect of an arrangement relating to the member, and

c

it is not a charity lump sum death benefit.

3

A lump sum death benefit is also a flexi-access drawdown fund lump sum death benefit if—

a

it is paid on the death of a nominee of the member,

b

it is paid in respect of nominees' income withdrawal to which the nominee was at the date of the nominee's death entitled to be paid from the nominee's flexi-access drawdown fund in respect of an arrangement relating to the member, and

c

it is not a charity lump sum death benefit.

4

A lump sum death benefit is also a flexi-access drawdown fund lump sum death benefit if—

a

it is paid on the death of a successor of the member,

b

it is paid in respect of successors' income withdrawal to which the successor was at the date of the successor's death entitled to be paid from the successor's flexi-access drawdown fund in respect of an arrangement relating to the member, and

c

it is not a charity lump sum death benefit.

5

But if the amount of a lump sum falling within sub-paragraph (1), (2), (3) or (4) exceeds the permitted maximum, the excess is not a flexi-access drawdown fund lump sum death benefit.

6

The permitted maximum is the aggregate of—

a

the amount of the sums, and

b

the market value of the assets,

representing the member's, dependant's, nominee's or successor's flexi-access drawdown fund in respect of the arrangement immediately before the payment is made.