Should I start to empty my SIPP

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82101631#Comment_82101631

Obviously it is a personal decision, but charitable giving is exempt from any IHT rules about gifts. Also if a sufficient amount is left in a will to charity the IHT rate is reduced.

hoofy

https://forums.moneysavingexpert.com/discussion/comment/82101711#Comment_82101711

I do plan on investing the money from the sipp into my S&S gia, not spend it.

I'm not really trying to work out how much money I have V how many years I might have left because I think I have more than enough. I'm playing a tax game as a way to pass my time and give me something to exercise my brain. The objective of the game is to pay as little tax as possible year after year until I die. After that, I don't care, the game will have ended.

hoofy

https://forums.moneysavingexpert.com/discussion/comment/82101729#Comment_82101729

Yes, that is something I would consider.

Linton

Does Mrs H have a SIPP and/or S&S ISA? It could be helpful putting excess wealth there if you dont already.

I would avoid a GIA simply because of the admin potentially involved.

hoofy

https://forums.moneysavingexpert.com/discussion/comment/82101778#Comment_82101778

I already do put the full £20k in her S&S isa and she also puts maximum in her sipp.

The admin in a GIA shouldn't be a problem, I do have plenty of time on my hands. The admin of keeping money anywhere is quite a thing, no matter where it is. If you have it in a high interest bank account then at the end of the term you have to open another account. Then you have to move money to the new account (my bank allows £25k a day) all takes time and effort.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82101744#Comment_82101744

Also consider if you die before your wife could she handle the assets you built up without professional assistance ( I note you have no children).

I have observed on this forum posters who have accumulated stocks and shares in Sipp, ISA and GIA portfolios , but then acknowledge their spouses have no interest in such matters.

Would your wife be able to cope with what you have accumulated, or left struggling what to do with it all? If you have an accountant for your company compliance matters would they be able to assist your spouse?

Incidentally what about lasting powers of attorney? If you suffer future infirmity and unable to properly manage the financial assets - same question applies with regard to your spouse's ability to takeover.

Just wonder to what extent you have conducted any succession planning in certain 'what if' scenarios.

hoofy

https://forums.moneysavingexpert.com/discussion/comment/82101795#Comment_82101795

My Mrs would struggle. I have tried to make sure she has enough in her bank to last her for a few years and I have instructed her, if anything happens to me, for her to get an IFA.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82101805#Comment_82101805

Finding an IFA if one doesn't know the difference compared to tied Financial Advisers might be a struggle in its own right.

A couple of other posters decided to do the leg work themselves rather than leave their wives exposed.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82101795#Comment_82101795

 If you have an accountant for your company compliance matters would they be able to assist your spouse?

We have seen examples on these forums of accountants giving poor personal financial advice, as many will have no training in that area, although some may.

I agree though that if you have substantial assets and your Spouse has no interest, it would be better to employ an IFA before you die. The problem for us DIYers, is that we would not want to be paying an IFA for potentially decades in advance of ones demise, or deterioration of ones faculties.

A compromise could be to delay employing an IFA, as the chance of dying/serious illness/dementia does not start to increase significantly until later years, ( late 70's?) and maybe you would get some warning signs in advance.

Although the OP should be aware that an IFA would probably not be able to follow his current policy/strategy,

I'm playing a tax game as a way to pass my time and give me something to exercise my brain. The objective of the game is to pay as little tax as possible year after year until I die.

as they are not tax accountants, and normally take a more holistic view of a family's finances.

They would probably tell him and his wife to stop worrying about tax, investments etc., and go and spend some of it. Apparently that it is quite common for IFA's to say that, especially to retired people who clearly already have more money than they need.

mrklaw

taking 50k from your SIPP and putting it mostly in a GIA while taking living expenses from an ISA makes no sense to me. maybe I’m missing something. You’re simultaneously drawing down from two tax advantaged pots and putting excess into a non advantaged GIA.

you could draw 50k from the SIPP - 16760 is tax free under your personal allowance then the next 33k is taxed at 15% (if you still have TFC available) so you’d pay about 5k tax or 10% on the whole lot.

But then I’d use whatever is needed to live off from that money - leave the ISA money wehre it is to grow tax free. Use any spare from the 45k net and put into the ISA first to your max, only then putting excess into GIA. aim to be as little in the GIA as possible.

and wouldn’t fuss too much about the state pension. yes it uses up your personal allowance but you still have almost 38k you can continue to draw at basic rate tax (or 15% effective with tax free cash included) so you can continue to transfer over into ISAs and potentially GIA if needed.

its all a little confusing as we don’t know what you need to live off, we don’t know who else may be in the household contributing or not (or if they have an ISA allowance you can also leverage)