Scared and confused

Daniel54

atush wrote: »

Dont be afraid of losing any supposed inheritance. That is a new thing, and not to be counted on. Inheritance is for those who have more than they require.

If you require it for yours or your OH, that isn't their inheritance. It is your life you need to live. I agree if you have young children there might be a problem, but not with those 21 and over.

In any case, half what the 2 of you have is yours and cannot be touched. So they can inherit that once you are gone. If you haven't spent it living your own life.

Echo that absolutely,having just spent the day with my sister and our elderly mother telling her repeatedly that our priority is the quality of her life not our inheritance .Any inheritance would be ashes in our mouths if it meant her going without,and I'm sure the OP's children would feel exactly the same.

They are grown up -don't feel afraid of talking with them about this.I hope and expect they will be fully supportive .

Daniel54

Bmw wrote: »

worry. All we ever wanted to do was work hard and provide for our Kids, 21 and 24. Very scared that we will lose their inheritance through care fees.

OP,picking up this point ,you don't say what sort of pension your husband has.

If it is a defined benefits pension,then you will receive an inflation linked pension if and when the time comes

If it is a defined contribution pension,any amount undrawn is disregarded for IHT and for care assessment purposes

Appreciate you have a lot on your plate but some advice for an IFA qualified for pensions,,tax and trusts might well be able to help you plan in a way that sets both your minds at rest

atush

I agree that they migth not want to Draw more them the TFLS at first. As as said, the pension left in the pot would become your pension if the worst happened.

PensionTech

As far as former pensions are concerned, it looks like your husband's LE is longer than a year so you would not be able to acces them until he reaches his 55th birthday. But you could contact the pension companies to be sure.

Not entirely correct - you can only commute benefits for a one-off lump sum if life expectancy is less than a year. But you can often have benefits paid as a pension (and lump sum) earlier than age 55 if in ill-health. http://www.hmrc.gov.uk/pensionschemes/ill-health.htm

Whether or not this is the best way to go in your situation will depend on what type of benefits your husband has in other schemes, what level of pension they would offer (sometimes they will waive the usual actuarial reduction that would apply upon early retirement), what they pay out if your husband were to pass away before retiring compared to what they pay out if he passed away after retiring, and how long/certain his remaining life expectancy is.