QROPS and asset protection
QROPS schemes, like their UK counterparts, are legally established as trusts and in some cases foundations or special purpose vehicles.
UK pension rights can be subject to claims that arise from bankruptcy orders and other legal challenges which result in a reduction to the pension fund.
Even if a claim against the UK pension fund is unsuccessful, it may still be possible to make a claim against the UK pension income.
This type of challenge can be avoided if UK pension rights are transferred to a QROPS.
Another potential area of risk to pension rights in the UK are the pension sharing orders that usually form part of a divorce settlement.
QROPS rules and indeed the laws of the jurisdiction in which they are located don’t usually recognise UK pension sharing orders.
For more information please email us.