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Client owned Company 50/50 with his wife. Full time working Director for many years, he had a healthy 6 figure salary with a large Company pension fund. He recently died prematurely at circa 45 years old (Sept/Oct 2015). Under the company pension fund there was ‘death in service’ benefit payable to his wife which resulted in his wife getting a large tax free sum from the pension fund (say €500,000). The Director did not receive any previous tax free lump sums. Can the company now also make a payment of €200,000 tax free to the Director (husband who died) under S.201 (2)(a)(i)? I’m assuming that the amount received by his wife under the death in benefit service will not affect the €200,000 proposed tax free payment. This payment would then pass to his wife under his will. The payment will be in the next financial year after the death, but it’s still within approximately 5 months of his death. I don’t think that this is unreasonable given the circumstances.

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Asked on 4 February 2016 9:05 pm