Unless you intend to die penniless

[Deleted User]

Sole compensation for your disinherited sprogs is that they have no inkling of your collective intentions.

Thrugelmir

The named beneficiaries will be subject to tax when the money is withdrawn. The Treasury collects it's share one way or another.

DairyQueen

ZingPowZing wrote: »

Sole compensation for your disinherited sprogs is that they have no inkling of your collective intentions.

Mr DQ's sprogs know of our intentions and I am sprog-free notwithstanding nephews and a couple of cousins of whom I am especially fond.

Mr DQ made the excellent decision to forego many of life's luxuries in order to ensure that his sprogs had the very best start. Better to receive their 'inheritance' at the beginning rather than the end of their productive lives if at all possible.

I conservatively estimate that it has cost him (us) close to £350k on school, university, postgrad and house deposits. All paid from post-tax income. He has worked extremely hard to fund this and, so far, the plan is paying off. We have the pleasure of seeing my independent, home-owning, 20-somethings stepds thriving in their chosen careers and personal lives.

We have not a shred of concern about inheritance and neither do they.

[Deleted User]

Thrugelmir wrote: »

The named beneficiaries will be subject to tax when the money is withdrawn. The Treasury collects it's share one way or another.

If the pensioner dies before the age of 75, it flows down tax-free!
Thereafter, the legatees are taxed at their individual rate; therefore, if the pensioner spreads his inheritance wisely and widely, tax can be circumvented.

ajbell

Another vote for dying penniless from me too.
Sipp should be exhausted on the day you die.

bostonerimus

My goal is to never spend a penny of my DC pension pots and other investments and leave large amounts to charity and to my family.

My nieces and their kids already get gifted the US max of $14k each a year in a long term plan to reduce inheritance tax and I also give to some charities. The big issue right now is my house as that’s a large non liquid asset that I don’t want to sell, but I will probably do that at some point and maybe move to another state with a far higher inheritance tax threshold than Massachusetts.

[Deleted User]

bostonerimus wrote: »

My goal is to never spend a penny of my DC pension pots and other investments and leave large amounts to charity and to my family.

My nieces and their kids already get gifted the US max of $14k each a year in a long term plan to reduce inheritance tax and I also give to some charities. The big issue right now is my house as that’s a large non liquid asset that I don’t want to sell, but I will probably do that at some point and maybe move to another state with a far higher inheritance tax threshold than Massachusetts.

That is interesting, bostonimerus: are you American or ex-pat British?

bostonerimus

ZingPowZing wrote: »

That is interesting, bostonimerus: are you American or ex-pat British?

The answer is yes;). British expat and now dual UK and US citizen.:

bostonerimus

ajbell wrote: »

Another vote for dying penniless from me too.
Sipp should be exhausted on the day you die.

i
It surprises me that so many people treat their DC pensions like a DB benefit. One of the few benefits of DC pensions is the possibility to pass on wealth down the generations.

NedS

bostonerimus wrote: »

It surprises me that so many people treat their DC pensions like a DB benefit. One of the few benefits of DC pensions is the possibility to pass on wealth down the generations.

I agree. I'd like to be in the situation where I can afford to only draw the natural yield from my SIPP and let the capital grow indefinitely, passing the capital on to my son. Hopefully I can educate him to do likewise in his retirement rather than withdrawing the lot the moment I'm gone. My other major asset (my house) he can sell/benefit from immediately upon my passing.