Pension to pay IHT

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81866013#Comment_81866013

I think the original plan was to impose a liability to pay the SIPP related IHT on the trustees of the SIPP. The executors had the responsibility of working out how much IHT related to the estate and how much related to the SIPP so they would need to inform the SIPP trustees of how much they owed. I guess there may have been issues with that and perhaps some suggestion of discretion for executors to pay the SIPP related IHT but I don't see how the executors could have any power to tell the SIPP Trustees to pay IHT relating to the estate. I suppose the new law could give them that power but it would surely be an unauthorised payment from a pensions point of view.

SVaz

I imagine premiums would be many £100’s a month, if not more. The older you are, the more you pay.

tim9333

I'm also looking into a joint life 2nd death policy in trust to cover off IHT from pensions becoming part of your estate next year. Looking at the premiums, the sooner this is taken out the better as premiums ramp up substantially with age.

With regard to which part of your estate is used to pay the IHT bill, can the SIPP be used to pay the entire bill as opposed to ISA etc.

This has a material difference to your beneficiaries if you die post 75 and the inherited SIPP becomes taxable at their marginal rate?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81874601#Comment_81874601

With regard to which part of your estate is used to pay the IHT bill, can the SIPP be used to pay the entire bill as opposed to ISA etc.

If you look at my post earlier in the thread, and the reply, this was already discussed.