Bone question from solicitor.

#1
I need a second opinion. The solicitor dealing with my late father's estate has reached out to me with a few questions including asking me to provide them with legal advice. I am not a solicitor, FA or Tax advisor.

"As far as the SIPP is concerned, please could you ask the company concerned to confirm that the benefit you will receive passes outside your father’s estate and should not be included on the HMRC account for inheritance tax purposes"

In short, is a SIPP inheritance tax exempt?

Apart from the fact that she is asking me to do their job, would there not be a conflict of interest in me acting as an intermediary and leave me exposed to lability if they mess up the IHT? (And they run the risk of me lying to reduce the IHT bill).

I am also very concerned that they do not already know the HMRC guidelines for SIPP's and inheritance.

Is it normal for solicitors to ask potentual benefactors to provide legal advice? It does not instill a lot of confidence.

Curious minds enquire!

And yes, I plan to see my own solicitor next week once the dust settles.
 
#2
Self Invested Personal Pensions are outside of the estate. However, there are limitations as to who can inherit the SIPP (didn't ask as it would be the wife / kids in my case).

Have just had an inhertance tax discussion with my IFA hence knowing this!
 
#3
Q. What happens to the SIPP if I die?
A. Death benefits may be paid as a lump sum or used to generate an income for any beneficiary, either under drawdown or by the purchase of an annuity. Death benefits are payable at the discretion of the scheme administrator but you may nominate the people you wish to receive benefits to guide the administrators. Death benefit lump sums are usually free of Inheritance Tax (IHT) but we cannot guarantee this.

If you die before age 75 the death benefits are normally paid tax free regardless of whether you have taken benefits from your pension or not. Beyond age 75 a lump sum will be taxed at 45% or incomes paid to beneficiaries will suffer their marginal rate of income tax.

Self-Invested Personal Pensions (SIPPs) Questions Answered
 

Sixty

ADC
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#4
Self Invested Personal Pensions are outside of the estate. However, there are limitations as to who can inherit the SIPP (didn't ask as it would be the wife / kids in my case).

Have just had an inhertance tax discussion with my IFA hence knowing this!
Not always. It depends on whether his dad has taken a lump sum from the SIPP or not and if he's used it before he passed away.
 
#5
Self Invested Personal Pensions are outside of the estate. However, there are limitations as to who can inherit the SIPP (didn't ask as it would be the wife / kids in my case).

Have just had an inhertance tax discussion with my IFA hence knowing this!
Did their solicitor ask you for legal advice on it?
 

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