How are you mitigating for IHT

Keep_pedalling

SVaz said:

Start drawing tax free cash from your Sipp in 2027 and spend it ?   

This is the best answer 😄, but why wait 2 years? 

SVaz

Because until 2027, it can be inherited IHT free , not part of the Estate. 

A £700k house suddenly becoming £850k and  £1million in investments changes the landscape a bit,  giving that little nugget of info would have been helpful of OP.   

I’d be getting the £62k TFC out tomorrow and buggering off on a nice long cruise,  or taking the Grandkids to Orlando , Disney etc.
The soon to open Universal Epic Universe park looks incredible.   I could easily spend £60k out there. 

Keep_pedalling

SVaz said:

Because until 2027, it can be inherited IHT free , not part of the Estate. 

A £700k house suddenly becoming £850k and  £1million in investments changes the landscape a bit,  giving that little nugget of info would have been helpful of OP.   

I’d be getting the £62k TFC out tomorrow and buggering off on a nice long cruise,  or taking the Grandkids to Orlando , Disney etc.
The soon to open Universal Epic Universe park looks incredible.   I could easily spend £60k out there. 

I know that, but it does not stop you enjoying your pension today and it gives you two more years to reduce your eventual IHT liability. 

incus432

Spending money on the house is unlikely to mitigate IHT as the value will increase - although probably not by as much as you spend. 

If you have not touched the SIPP you could take the TFLS from it and gift that immediately.  And/or you could drawdown the SIPP and make big gifts to charities of your choice. And/or take luxury holidays with first class travel.

There must be 50 ways to spend your money

DRS1

You could try posting on the Cutting Tax board - though I suspect you may get the same audience.
You need to talk to a solicitor who belongs to STEP who can advise you on estate planning, your will and lifetime gifts if that is what is on your mind.  For example are you leaving anything to charity in your will?  If not think, about it.
In preparation for any such meeting you may want to put together a statement of assets with perhaps some slightly less fluid numbers.  They will also want to know what happened with your deceased husband's estate when he died - did it all go to you or did he create a nil rate band trust or something clever?

aldershot

Spend what you can on what you need or what you want. Give away what you can or what you want to. Live in the nicest care home if you need to at the end of your life. Let your estate pay the tax on the balance for the public good and stop worrying. Far to many worry about what happens after they die rather than living the life they have IMHO. 

Moonwolf

Perhaps because we don't have any surviving children it isn't a big thing on our horizon.

The house is only worth £250K anyway and I'll have probably spent most of the DC pension by the time I pass.

My spouse gets it all tax free anyway and if there is anything left the niblings will get it, if it is after tax so be it.  Given other inheritances and parental wealth, they will be better off than average anyway.

Cobbler_tone

I suspect your loved ones won't care and will be more occupied by their loss. If/when it becomes an issue for someone, there is a 100% certainty that you won't be worrying about it!

Live for now and treat the ones you care about now.