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Ltd and Widow's Pension

Can a director set up widow's pension

A client runs a private Ltd with his son & wants to secure an income for his wife for her lifetime.  Can he set up a pension that will enable the company to make such annual payments after his death?

Can the ltd claim tax relief on the payments?

Any other ideas how to secure the revenue stream for his wife?

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25th Feb 2019 16:22

Much better - both for the company, and the widow’s security of receiving payment - to fund it externally.

But if a self funded obligation is the only possibility, client needs to sit down with a good lawyer now to find out how, or indeed if, the company can enter into an irrevocable commitment before he dies that the future owners and managers of the company cannot get the company out of short of liquidating it.

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