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by hiriskpaul
November 12th, 2019, 5:40 pm
Forum: Legal Issues (Practical)
Topic: Premium bond wins after death
Replies: 4
Views: 409

Re: Premium bond wins after death

Thanks, just had another thought - should this be treated as taxable income to the estate? I know PB wins are not normally taxable, but unsure in this instance.
by hiriskpaul
November 12th, 2019, 5:35 pm
Forum: Legal Issues (Practical)
Topic: How long does probate take?
Replies: 10
Views: 2561

Re: How long does probate take?

Probate papers through today. 17 weeks after applying and 12 weeks after HMRC completed their assessment and sent the IHT 421 to the probate registry. An outrageous amount of time IMHO.

Following exchanges on here I did manage to persuade my cousin to pay the IHT, which turns out to be just as well!
by hiriskpaul
November 12th, 2019, 5:24 pm
Forum: Legal Issues (Practical)
Topic: Premium bond wins after death
Replies: 4
Views: 409

Premium bond wins after death

As I understand it premium bonds are eligible for wins for 12 months after the holder dies. As part of an estate I am sorting out, the deceased has won a few hundred since he died. The winnings have been automatically invested into new PBs. I included the value of the PBs in the IHT400 and IHT is du...
by hiriskpaul
November 7th, 2019, 4:52 pm
Forum: Passive Investing
Topic: S&P GLOBAL DIVIDEND ARISTOCRATS ETF - GBDV
Replies: 5
Views: 1022

Re: S&P GLOBAL DIVIDEND ARISTOCRATS ETF - GBDV

A little related to a previous post I made in the IT/Funds section on IUKD. Does anyone have view on the above ETF? Taking City of London (yeah, apples v oranges etc....) as a benchmark, CITY and GBDV have the same yield yet GBDV has pretty much trounced CITY the last five years. The theme is a han...
by hiriskpaul
November 6th, 2019, 6:55 pm
Forum: Retirement Investing (inc FIRE)
Topic: Lifetime Allowance for Pensions
Replies: 26
Views: 1271

Re: Lifetime Allowance for Pensions

However, there are other benefits pensions have that ISAs do not, such as IHT savings. My ISA does, potentially. Mainly invested in Business (Property) Relief qualifying shares on AIM. Until the Law changes and/or I lose the 40% possible saving. I was considering the risks and benefits of investing...
by hiriskpaul
November 6th, 2019, 6:15 pm
Forum: Investment Strategies
Topic: Election impact on investment strategy
Replies: 89
Views: 3299

Re: Election impact on investment strategy

A simple solution to ISAs would be to abolish them and increase the allowances for dividend and interest income. Labour could even pass that off as a tax simplification, especially if they combined them into a single "Investment income" allowance. Then in future years, they could gradually...
by hiriskpaul
November 6th, 2019, 5:55 pm
Forum: Retirement Investing (inc FIRE)
Topic: Lifetime Allowance for Pensions
Replies: 26
Views: 1271

Re: Lifetime Allowance for Pensions

" I just wanted to set out that the tax relief was still of benefit to basic rate taxpayers. In my view the pension uplift is too small to compensate for the inflexibility of pensions for anyone who is not at or close to age 55, hence my suggested tests which I stand by. And as Urbandreamer po...
by hiriskpaul
November 6th, 2019, 4:56 pm
Forum: Retirement Investing (inc FIRE)
Topic: Transfer-in offer from public sector pension
Replies: 22
Views: 1068

Re: Transfer-in offer from public sector pension

I'm not sure I'd factor annuity rates anywhere in the modelling, I'd compare the DB quote against what I'd actually be likely to do with the pot. For example, with £66K in a SIPP over 19 years you might hope/expect to get a return of, say 3% over inflation. This would give you a pot of about £115K ...
by hiriskpaul
November 6th, 2019, 3:51 pm
Forum: Retirement Investing (inc FIRE)
Topic: Lifetime Allowance for Pensions
Replies: 26
Views: 1271

Re: Lifetime Allowance for Pensions

Going off topic here, but I think it is worthwhile pointing out what a great deal pensions are for higher rate taxpayers who only pay basic rate tax in retirement. In those circumstances higher rate taxpayers pay an effective tax rate of 15% by routing money through pensions, but gain an additional ...
by hiriskpaul
November 6th, 2019, 2:59 pm
Forum: Retirement Investing (inc FIRE)
Topic: Lifetime Allowance for Pensions
Replies: 26
Views: 1271

Re: Lifetime Allowance for Pensions

Pensions are tax efficient to basic rate taxpayers. eg for 100k in a pension fund, 80k contribution + 20k tax relief top-up, after taking 25% tax free pension commencement lump sum leaves 75k. 75k taxed at 20% basic rate is 15k tax. Effective tax rate 15%. Another way to think about it is 80k after...
by hiriskpaul
November 6th, 2019, 12:58 pm
Forum: Retirement Investing (inc FIRE)
Topic: Lifetime Allowance for Pensions
Replies: 26
Views: 1271

Re: Lifetime Allowance for Pensions

You should distinguish two issues: (a) saving and investing enough money to support you in retirement, and (b) taking advantage of the tax deferral and other desirable features of pensions. For example pensions are a grand idea if: (i) you defer income tax from 40% now to 20% in retirement, or from...
by hiriskpaul
November 5th, 2019, 5:28 pm
Forum: Bank Accounts Savings & ISAs
Topic: Current Account for Trust.
Replies: 38
Views: 5192

Re: Current Account for Trust.

I dealt directly with CA. I did not need a financial advisor and there were no costs involved. As regards ID, the Application Form requires a great deal of personal information (nationality, how long at the current address etc) for the trustees and beneficiaries plus, of course, the trust deed. The...
by hiriskpaul
November 5th, 2019, 1:43 pm
Forum: Bank Accounts Savings & ISAs
Topic: Current Account for Trust.
Replies: 38
Views: 5192

Re: Current Account for Trust.

My local branch of Lloyds suggested a Treasurer's business account might be suitable but 'Business Accounts' transferred me to 'Personal accounts', which was where I started. Eventually, my 'Relationship Manager' in Lloyds Private Banking stated categorically that Lloyds no longer offered trust acc...
by hiriskpaul
November 4th, 2019, 12:07 pm
Forum: Retirement Investing (inc FIRE)
Topic: Lifetime Allowance for Pensions
Replies: 26
Views: 1271

Re: Lifetime Allowance for Pensions

If you exceed the LTA you actually have 2 choices. You can take the excess as a lump sum and pay a 55% charge. Alternatively you can pay a 25% charge and leave the rest invested in the pension fund. You then pay income tax on subsequent withdrawals in the normal way. For many if not most people, I s...
by hiriskpaul
November 1st, 2019, 3:29 pm
Forum: Legal Issues (Practical)
Topic: Will advice
Replies: 41
Views: 1697

Re: Will advice

One possible way of dealing with the problem is to leave your estate to trustees and create a form of discretionary trust, accompanied by a letter of wishes. What your Will would effectively say is "I give my estate to my executors, Tom and Mary, on trust to distribute it to the following char...
by hiriskpaul
November 1st, 2019, 12:18 pm
Forum: Retirement Investing (inc FIRE)
Topic: SIPP Fees
Replies: 13
Views: 1213

Re: SIPP Fees

iWeb charge £45 per quarter, £5 dealing fee, but no extra fees for holding OEICS. If you got rid of the OEICS and stuck with UK shares, ITs and ETFs, Fidelity would be a cheap option for you at £45 per year, £10 dealing fee. They currently offer 173 ITs, 272 ETFs and over 1000 UK shares. No charges ...
by hiriskpaul
October 30th, 2019, 12:24 pm
Forum: Retirement Investing (inc FIRE)
Topic: Extraordinary value - not
Replies: 24
Views: 1845

Re: Extraordinary value - not

For a laugh I got some annuity quotes when I crystallised my SIPP. I cannot remember the full details now, but on the level annuity I worked out that to generate the same income from a DIY gilt ladder, the ladder would take me beyond the age of 100. One problem annuity providers have, and especially...
by hiriskpaul
October 30th, 2019, 11:54 am
Forum: Retirement Investing (inc FIRE)
Topic: Selling multi-asset funds for retirement income
Replies: 26
Views: 1593

Re: Selling multi-asset funds for retirement income

I agree with the points made about diversification and would say it is prudent to use more than 1 broker. If a broker fails your assets could be inaccessible for a while even if you do not lose money due to fraud, etc. If investing in actively managed funds it is definitely worthwhile diversifying a...
by hiriskpaul
October 30th, 2019, 11:24 am
Forum: How Do I Invest
Topic: Retirement - from those that have
Replies: 24
Views: 1825

Re: Retirement - from those that have

Getting back to the original question, I guess I probably have retired, but in my case I slowly moved into it, doing decreasing amounts of paid work. Although I do still have £5k income as a NED. I do have a friend who is constantly dangling Brexit related work in front of me, but I have resisted be...

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