Family SIPP - anyone got info on them?

bellydancer_2

Has anyone got any info on family SIPPs where the SIPP can be 'cascaded' down to other members of the family?:j :j

EdInvestor

Not yet it can't, though people with very large funds may be able to come up with a few trust related tricks.

bellydancer_2

thank you for your reply

we have been told about the Freedom Family SIPP which does this cascading - have you heard of it?

EdInvestor

A SIPP in ASP can be passed on to a dependant (eg a spouse) but once the spouse dies, the remaining fund will be subject to an 82% tax charge unless given to a charity.

So not a lot of leeway for much cascading yet.

A SIPP in drawdown (pre aged 75) can be given to heirs on death in cash, after a 35% tax charge.This is outside the estate so no IHT payable.

purch

I thought that the 'Family SIPP' idea was one of those concepts which like holding Residential property was being touted as the big advantage of SIPP's in the run up to A day, which then didn't actually happen.

BTW the Freedom Sipp is is very expensive, about £400 to set-up and minimum £ 900 a year admin