Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to tjh290633,csearle,jfgw,bionichamster,Shelford, for Donating to support the site

The mother in law....

flyer61
2 Lemon pips
Posts: 241
Joined: November 11th, 2016, 12:53 pm
Has thanked: 56 times
Been thanked: 57 times

The mother in law....

#241104

Postby flyer61 » August 1st, 2019, 5:43 pm

Aged 84.....no earned income and no tax relief available over the age of 75. Is there any advantage in opening a pension in her name, I am thinking of inheritance tax down the line...or is this avoidance and we would get thwacked?

Kantwebefriends
2 Lemon pips
Posts: 124
Joined: November 5th, 2016, 4:02 pm
Has thanked: 5 times
Been thanked: 10 times

Re: The mother in law....

#241176

Postby Kantwebefriends » August 1st, 2019, 11:37 pm

Presumably you've found a provider who will let her contribute under these circs?

I wouldn't risk it. If she changes her mind and takes the money out again 75% will be taxed. If somebody else inherits they'll have to pay income tax on withdrawals, and she risks a change in the law that might mean the tax deal on an inherited pension becomes worse.

Is she already taxing max advantage of ordinary IHT exemptions e.g. the regular gifting of surplus income?


Return to “Pensions - Practical Problems”

Who is online

Users browsing this forum: No registered users and 2 guests