SIPP and IHT

Briskly

https://forums.moneysavingexpert.com/discussion/comment/81983143#Comment_81983143

Thanks. Quite a lot of the estate would still be in IHT territory so I hope the SIPP to charity donation would count in the total owed. It would be good to know for sure! Is it worth calling HMRC?

SouthCoastBoy

The problem with gifting early is the uncertainty of future expenses, e.g. care costs.

If you are all dc there will be many people with 1 to 2 million pots plus house worth around 500k+ however money can't be gifted due to deprivation of assets, just in case of care home costs and longevity of living.

Albermarle

I've done the sums and the total pension will be hit with IHT as it pushes the estate over the nil band

The current thinking seems to be that the pension and non pension assets will pay IHT in proportion to their size, although it is not entirely clear if there will be any flexibility, or not..

Quite a lot of the estate would still be in IHT territory so I hope the SIPP to charity donation would count in the total owed. It would be good to know for sure! Is it worth calling HMRC?

If you call HMRC, the chance that the person answering the call, will know the answer to a relatively obscure question about legislation that is not even in force yet, is approximately zero. Suggest you wait until next year and look into it again.

AlanP_2

https://forums.moneysavingexpert.com/discussion/comment/81983384#Comment_81983384

DoA only applies where there was a realistic or actual need for care at the time the gift was made.

Gifting years before you get diagnosed with dementia or whatever and need care is outside the scope of the regulations AFAIK.

Briskly

Thanks for all the comments and advice. Much appreciated!