Create a pension for another

Is it possible to bequeath a lump sum to a relative in the form of a annuity/pension, payable at a certain age. Obviously, executor would have to set this up.

Sort of.

You could settle monies in trust, either inter vivos or in your will, with the income on that sum (or a specified fixed percentage) payable on a periodic basis to your relative throughout their lifetime, with any remainder to be inherited as you direct.

Alternatively, you could establish a discretionary trust and leave it up to your trustees to decide when to distribute funds to your relative.

It would probably be best to have a chat with your solicitor to discuss the best approach in your circumstances.

Many thanks Sarenco

You can do this, as Sarenco says, but the overheads are likely to be considerable, so it may not be a good idea.

And the tax breaks and tax deferrals associated with an occupational pension are not likely to be available to an arrangement of this kind.

If what you are thinking of is a purchase life annuity, where you give an insurance company a lump of money and they pay an annuity for the rest of your/ their life, they are not available in Ireland.

Methods of providing someone with an income have already been suggested but there is always the risk of the trust running out of money during the recipients lifetime.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)