Tax Free Cash from a Pension

My client aged 80 applied for tax free cash from pension. The provider delayed the payment as they did not have the correct bank account to make the payment. 4 days later the client died and now the provider will not make the tax free payment, stating that the fund is now taxable. I know the payments are taxable on recipients on death claims after age 75. But should not the fact that he applied while he was alive prevail?

Hi Bernard Rustt,
Please refer to:
Tax when you get a pension

Thanks for that answer. I understand how pensions are taxed. The issue I have is that the client applied for tax free cash, legitimately, while he as alive. Due to processing delays, he died before the money was paid. The question I have - is it fair that his dpendents will now pay tax on that withdrawal. Should the TFC be paid as it was in progress before he died? Many thanks.

Hi ,
 

We cannot comment on scenarios or examples, we can only provide general information / guidance in this forum.  For an answer to a detailed question of this nature, you would need to seek professional advice. Thank you .