Create a pension for another

T

Tomohawk

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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.
 
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)
 
If the question centre's around getting cash to an elderly relative that needs it you could consider a deed of covenant with potential for up to 40% tax rebate between the two parties.
 
To be clear. where I do not wish a beneficiary of part of my estate to receive hard cash, but would have a preference to set up pension or annuity when that person reaches a certain age. Therefore, the setting up would happen at my death (I assume by executor) but the payouts would not be immediate.
 
Steven Barrett said:
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.
Click to expand...
This surprises me. I understand that the market would be limited, but there would be a certain demand from defined benefit pension schemes (esp. those winding up) and in connection with RACs, so the infrastructure for pricing and administering annuity contracts must be in place. I'm puzzled as to why insurers would turn away the business.
 
Tomohawk said:
To be clear. where I do not wish a beneficiary of part of my estate to receive hard cash, but would have a preference to set up pension or annuity when that person reaches a certain age. Therefore, the setting up would happen at my death (I assume by executor) but the payouts would not be immediate.
Click to expand...

It might be better for you to specify why you want to do this.
Is the beneficiary intellectually challenged or irresponsible?
What will their circumstances be?
What is your relationship to them?
How much will be involved?

Someone might suggest a better solution which achieves what you are trying to achieve.
 
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