A real story from someone facing the toughest of questions.
I was recently asked a heartbreaking but important question: “I have a terminal illness and I’m on palliative care—should I take 25% of my pension or the full amount?”
Samantha (not her real name), was 59 years old. Because she was under 75, the pension lump sum could be paid out tax-free—provided a registered medical professional, like her cancer consultant, confirmed she was expected to live less than 12 months.
But the real question wasn’t about tax. It was about purpose.
Samantha knew her days were limited. Her illness meant she couldn’t enjoy many of the things she once had. But she could find joy in something else: giving.
She wanted to see her family benefit from her money while she was still here. To share moments, to pass on love through gifts—now, not later. These gifts would be classed as Potentially Exempt Transfers (PETs), meaning if she passed away within seven years, they’d count against her inheritance tax allowance of £325,000. But for Samantha, that wasn’t the priority.
She took the full amount. She gave with intention. And after she passed, her son wrote to me to say how much it had meant to her—and to them as a family.
That letter stuck with me.
Money doesn’t care who it belongs to. But when you give it meaning, it makes all the difference.