Basic inheritance tax question

nom_de_plume

Just thinking out loud here so please correct if I've missed something or got my facts wrong but could they put the £100,000 into a pension fund which could then be inherited free of IHT? Their being over 75 would render income tax payable on the pension if cashed in by the beneficiaries but it could be transferred tax free into their own pensions. This would at least keep the funds fully under the parents' control.

Plan B is to hope the Conservative do go ahead and abolish IHT...

bompey

Pension contributions would need to be made out of earned income so unless they are both working, which is unlikely at 80, then no.

plan B and an abolition of IHT would make things easier.