The Family SSAS is a fantastic way to ensure ultimate inheritance planning and tax efficiency. If the plan is to build the legacy, then a SSAS is a fantastic tool, for accruing assets and securing them for future generations.
A Family SSAS is a family pension trust, independently established for the benefit of its members. Members of the trust can be family members or also company members. The SSAS is a corporate pension and so regulated by HMRC and The Pensions Regulator, enjoying the same benefits as traditional benefits, plus much more. The Family SSAS pension is controlled by its members and so all investment decisions are at the discretion of the members of the SSAS. In the case of the Family SSAS, this means that the family is responsible for the fund and how the funds are invested. It also means that family assets, such as property and land, can be secured within the SSAS to ensure a legacy for generations to come. For families and small businesses, the Family SSAS is the ideal vehicle for wealth protection and succession purposes, as well as ensuring that inheritance tax is minimised.
A Family SSAS must initially be established by a company director and registered with HMRC. Once established, other family members or key company employees may also be invited to join the trust, making it the perfect tool for family run businesses. The Family SSAS may have up to 11 members, who may also transfer in their pension funds if they wish to, creating a larger pooled pot. Members retain the percentage portion of the pot that they put in, as the pot grows. Funds may be invested at the discretion of the members.
The Family SSAS is a unique and flexible pension with a very wide range of investment choices. Examples of popular Family SSAS investments include: the family business, commercial property, land, indirectly in residential property, unquoted shares, gilts and bonds, and a much wider range of investment than usually available within traditional pension funds.
The Family SSAS is an asset that can be passed down through the generations and wealth secured. As a pension trust, it is legally protected from creditors. Therefore, it is the ideal way to ring-fence assets for family succession and inheritance.
Should a member of the SSAS retire, their retirement savings within the SSAS can provide the same retirement options as traditional pensions, for example, take a 25% lump sum, secure an income or receive an income from the fund or even choose a combinations of these. Income that is generated by investments the fund has made (for example rent it is receiving from property) can be paid to the retired member as benefits and assets left within the fund. Due to the flexibility of the SSAS, the member can delay retirement or take retirement early, taking income from the fund at the same time as taking a portion of their pension, for example if they continue to work part time.
The SSAS is an asset that can be handed down through the generations. If a SSAS member dies, beneficiaries can quickly and easily receive benefits and assets. With very few exceptions, there is no inheritance tax as the SSAS is not part of the estate, but a pension. The fund can continue to be held and passed down through the generations, as long as the funds last.
A successful SSAS with long-term investments and strategies can last for many generations, providing valuable benefits and securing assets. Beneficiaries are immediately entitled to draw benefits, regardless of age.
Read more about SSAS death benefits here.
For family businesses, the Family SSAS is the ideal vehicle for ensuring business continuity. Not only does it ring-fence and protect assets within the scheme, it means that a business can be handed down through the generations, avoiding extensive legal fees and arduous paperwork. As part of a long-term strategy, succession planning can include a straight-forward exit plan for older generations as the younger generations move into key positions. Retired members of the family business can continue to live the lifestyle that they desire by using flexible strategies to pay benefits from the SSAS, whilst keeping key assets retained within the scheme. This allows the Family SSAS to continue to grow and continuity to be optimised.
This is just one example of how the Family SSAS can be used for succession planning, whilst still providing retirement benefits and business growth.
Recently been working with Tom at the Landlords Pension through a recommendation from a close friend. Tom is very knowledgeable and explained their services very clearly. Really helpful and friendly guy who immediately put me at ease. Always at the end of the phone or email ready to answer any questions I have.
Highly recommend The Landlords Pension for setting up a SSAS pension. Many Thanks to Liam, Michelle, Teresa and the team for their support throughout and making it an easy process. Looking forward to our working relationship with future investments.
Wouldn’t hesitate to recommend there services to open a SASS, massive thanks to Dan, Michelle and Teresa who made the setup seamless, very supportive throughout the whole process.
Look forward to many years of successful investments with The Landlords Pension
Highly recommend The Landlord’s Pension for opening a SSAS. They are highly professional yet friendly and personable. They are really helpful and keep you informed every step of the way. It’s refreshing to pay for a service by a company who actually do what they say they are going to, with zero aggravation and problems! Thank you guys 🙂
I recently opened my SSAS through The Landlord’s Pension and they have been professional, approachable and efficient throughout. Simon, Teresa and Michelle have all been great in answering my questions and queries and doing their best to ensure the process of transferring over my existing pension has been a smooth and seamless one. I would have no hesitation in recommending them.
I’ve been working with The Landlord’s Pension this year to sort out historically messy pension arrangements and take control by creating a Family SSAS. Chris Brown has been an absolute pleasure to deal with, friendly professional advice all the way through. Thanks!
We had a number of workplace and final salary pensions, dotted all over the place and decided to pull them all into one SSAS. Laura and the team were excellent in explaining what to expect and keeping us advised every step of the way, in fact as part of the fact-find, we came across pensions we didn’t realise we had! I manage my own SSAS, but I know that Laura is at the end of the phone if I need her and she will not hesitate to help. I couldn’t recommend The Landlord’s Pension enough, they were absolutely brilliant!
