New Member SIPP query

cloud_dog

Dh6 wrote: »

If my wife and I were able to save more than the 4K a year each into our Lisa's, would it then become logical to open up our own SIPP's?

If you are happy not to need to worry about IHT and possibly needing benefits in the future, my opinion is yes, that is the way to go.

Dh6

Pardon me for being naive, could you explain to me the relevance of inheritance tax for someone in my situation please?

Correct me if I'm wrong, what you're saying is that my estate would be over the threshold of 325k and be liable to IHT on my estate. In today's money my house might be worth £240k plus if we invest in our LISA's at the maximum for the next 18 years we will have 90k each plus interest.

If we wanted to avoid the IHT threshold would we not be better taking out pensions instead which would not be classed as part of our estate for IHT?

Thanks again DH6

cloud_dog

Yes.

The reason I caveat my comment with IHT is that we do not fully understand your complete financial situation, for example the age and wealth of both your parents, in addition to your own (current) financial situation, etc.

I agree with your previous post on how to proceed.

If we were in your shoes I would do both LISA with pension being for any additional available monies. As long as you remain a BRT payer and cannot benefit from Salary Sacrifice.

If IHT were to become a consideration in the future, I would expect you to have a number of years to 'manage' it should you need to.