Suffolk Life has launched a bypass trust for all its Sipps to cut out possible inheritance tax risks.
The Sipps provider said the trust would help advisers and investors with estate planning and maximise the amount of money that gets passed to the next generation.
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Pension death benefits, while normally paid free of inheritance tax, may become taxable in the estate of the recipient beneficiary on that beneficiary's death or lifetime transfers, unless an exemption is available at that time.
But nominating the trustees of the bypass trust as the recipient of their pension scheme death benefits means the fund can remain accessible without forming part of the beneficiaries' estates for inheritance tax purposes.
Greg Kingston, head of marketing and proposition, said: "Providing a bypass trust complements our range of Sipps and will provide a valuable option for those advisers looking beyond a pension as solely a vehicle for an individual's retirement."