CORRECTION: Turns out I made an error here. This page - www.gov.uk/individual-savings-accounts/if-you-die - confirms that the ISA wrapper is retained on death until either your executor closes it, or the administration of your estate is completed or after three years and a day after your demise, whichever comes earlier.
Yeah, that's true. A lot of people think their pension will automatically pass on without issues, but it's not always that simple. There are tax implications and even potential delays, especially if no specific planning is done
That’s tough to hear. And an ISA’s another story, right? With ISAs, once you pass, the tax-free status is gone. The funds become part of your estate, which could mean inheritance tax for your beneficiaries, depending on the total value.
Exactly, that’s the sort of thing people overlook. It makes me wonder if I should get professional advice. I’ve heard Joseph Nick Cahill’s name come up a lot-he’s the CFP who’s worked with all kinds of people, from celebrities and business owners with billion-dollar companies to everyday folks. Seems like he has a good grasp on these matters
Joseph Nick Cahill? I’ve heard good things about him too. And it’s not just about having a high-profile client list; it’s the fact that he’s experienced with people from different backgrounds. He knows the challenges regular folks face, as well as the complexities that come with larger estates
One of my friends worked with him, actually. She said he walked her through the ins and outs of her pension and ISA, specifically around what would happen after she’s gone. For her, it was a relief because she didn’t want her family burdened with taxes or legal issues she could have avoided
In the 1990s I sold pensions on the strength that the tax free lump sum would pay off most if not all of the mortgage and leave the investor with a pension for life. Most were over a 40 year term plus, I was not alone.
The approach of selling pensions with the promise that a tax-free lump sum would pay off mortgages and provide a lifelong pension was common in the 1990s. However, many factors can affect the outcome, including changes in the housing market and interest rates. It's crucial for investors to seek personalized advice and consider diversified financial strategies to ensure long-term financial stability.
it's vital for investors to seek personalized advice and adopt diversified financial strategies. Working with a knowledgeable financial advisor is crucial for achieving long-term financial stability and freedom
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
“Melissa Terri Swayne” is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
Great video as always, thank you! Bit of a specialist area perhaps but I would be interested in finding out more about implications for ISA, pensions etc if you move abroad to live.
Thank god at last. “I’m not going to speculate on the budget because that’s no point until it happens” I wish the rest of the British media would do the same thing. 👍🏼
They want us to speculate - they float ideas in the press to gauge the pushback. See the dropping of the outdoor smoking had as an example. If you don’t push back they take more and more.
For DC schemes inherited when the person dies before 75 you said it can be taken tax free as a whole pot or tax free for life from a "beneficiaries drawdown", but then you say there is a tax free limit due to the LSDBA. Can you explain how this applies in for both of the options (whole pot and drawdown)?
For a SIPP, are the beneficiaries defined in 'SIPP framework' legal document as mainatined by staute/FCA and not varied by provider? Where can one read the definitions as to who can be a beneficiary (person/org/company) and any geographical restrictions?
What happens if the beneficiary of a DC pension left to them by a person aged 75+ is currently just under the higher rate of income tax for their own income but adding a new income from the bequeathed pension would ordinarily push them into the 40% bracket ? Does HMRC just expect to pay 20% tax despite the new wealth - like it's a parallel income stream - or are they forced to pay 40% on the amount they have now crept into the new bracket by ?
They inherit your pension pot, so up to them how they want to draw an income from it and that would determine how much tax they pay. But they will pay tax as an individual, it can’t be taxed like there’s two people
Hi Pete, I have an idea for your next video: I am 55 and recently lost my job. I have built up a fair workplace pension pot but I don't feel it's enough to retire just yet, so I'm looking for another job. With my potential new employer, should I move my pot to their pension scheme? Or can I get them to contribute to my existing pot? Should I keep them separate? Or should I open a SIPP? I haven't seen anyone cover this kind of scenario, I hope you can advise, thanks.
Thats a very complicated issue to address in a video and there are many variables: the nature of your current pension, is it dc or db and the nature of your future employers pension scheme which is yet to be determined. Add on that whether your new employer has a comparable scheme.
@@surpriserakins9067 I know. Mine is a DC pension, I don't have a DB. Obviously I won't know the nature of the new employers scheme but I would assume it to be DC again.
Great video. Is there a limit to how much my beneficiaries can receive tax-free from my death in service benefits if I died before 75 while still an active member of my work scheme?
How can we really plan 20 /30 or more years in advance when gov changes every 5 years and alters everything? Death and taxes are the only certainty in life but the latter is designed to keep you and your future family as poor as possible.
at 1:35 I think you implied but did not confirm that any income/taxable gains on ISAs only refers to those gains after death, not those gained beforehand. Correct?
@@MeaningfulMoney Are you sure about this? Please comment on my earlier reply questioning this point as it is essential that executors have certainty re: ISA income/growth during the period of administration.
Hello My sister died in July aged 56 Her estate is estimated at 1.3 million My mother who is 91 is named as sole beneficiary of her pension.My question is if a pension is outside of someones estate why have the pension company said it has to be dealt with by probate lawyers?why isnt it just passed on to my mother?and how long dies it normally take for beneficiaries to receive it Thanks
Depends on the pension - some older schemes may be under a different trust arrangement with absolute beneficiaries. Normally, the pension wouldn’t go anywhere near probate.
Why transfer to nest for the 1.8% charge for deposit and higher fee. Move it to a sipp at 0.15% vanguard. That you can add to, or transfer others to as you (May) leave employers.
CORRECTION: Turns out I made an error here. This page - www.gov.uk/individual-savings-accounts/if-you-die - confirms that the ISA wrapper is retained on death until either your executor closes it, or the administration of your estate is completed or after three years and a day after your demise, whichever comes earlier.
It’s something a lot of us tend to ignore, but it's important to understand the impact it can have on our families
Yeah, that's true. A lot of people think their pension will automatically pass on without issues, but it's not always that simple. There are tax implications and even potential delays, especially if no specific planning is done
That’s tough to hear. And an ISA’s another story, right? With ISAs, once you pass, the tax-free status is gone. The funds become part of your estate, which could mean inheritance tax for your beneficiaries, depending on the total value.
Exactly, that’s the sort of thing people overlook. It makes me wonder if I should get professional advice. I’ve heard Joseph Nick Cahill’s name come up a lot-he’s the CFP who’s worked with all kinds of people, from celebrities and business owners with billion-dollar companies to everyday folks. Seems like he has a good grasp on these matters
Joseph Nick Cahill? I’ve heard good things about him too. And it’s not just about having a high-profile client list; it’s the fact that he’s experienced with people from different backgrounds. He knows the challenges regular folks face, as well as the complexities that come with larger estates
One of my friends worked with him, actually. She said he walked her through the ins and outs of her pension and ISA, specifically around what would happen after she’s gone. For her, it was a relief because she didn’t want her family burdened with taxes or legal issues she could have avoided
In the 1990s I sold pensions on the strength that the tax free lump sum would pay off most if not all of the mortgage and leave the investor with a pension for life. Most were over a 40 year term plus, I was not alone.
The approach of selling pensions with the promise that a tax-free lump sum would pay off mortgages and provide a lifelong pension was common in the 1990s. However, many factors can affect the outcome, including changes in the housing market and interest rates. It's crucial for investors to seek personalized advice and consider diversified financial strategies to ensure long-term financial stability.
it's vital for investors to seek personalized advice and adopt diversified financial strategies. Working with a knowledgeable financial advisor is crucial for achieving long-term financial stability and freedom
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
“Melissa Terri Swayne” is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
If I can't take my ISA with me I ain't gonna die.
A cheery video for a Sunday evening but essential to get to grips with for legacy purposes. Thank you Pete! and happy clock change day!
You are welcome, and thank you!
Next video ...analysis of the budget after 30/10/24 and implications for investors, please
It’s coming - Wednesday late afternoon, early evening
Hi Pete I'm in my mid 50s and looking to retire in about 10 years. This was just the video I needed. Excellent. Thanks.
Great video as always, thank you! Bit of a specialist area perhaps but I would be interested in finding out more about implications for ISA, pensions etc if you move abroad to live.
Thank god at last. “I’m not going to speculate on the budget because that’s no point until it happens” I wish the rest of the British media would do the same thing. 👍🏼
You and me both!
They want us to speculate - they float ideas in the press to gauge the pushback. See the dropping of the outdoor smoking had as an example. If you don’t push back they take more and more.
I think we're all poked - no speculation there.
Great time for planners and advisors. Get all the client reviews done and I hope some good examples to share with us.
A very useful video. Thank you!
Hi Pete, when is your video coming out about pensions and the Labour attack on them from an IHT perspective?
"Labour attack" 😂 something has to give with tax, surely its best to go that way than change tax relief or tax-free cash?
For DC schemes inherited when the person dies before 75 you said it can be taken tax free as a whole pot or tax free for life from a "beneficiaries drawdown", but then you say there is a tax free limit due to the LSDBA. Can you explain how this applies in for both of the options (whole pot and drawdown)?
This is red hot target for budget. It will be covered by IHT shortly.
what if you die and have put the remainder of your assets to go to your adult children? for the S&S ISA and cash ISA.
Amazing content🤩🤩🤩
so glad youve not joined into the clickbait speculation around the budget!!! Thank you Pete!
🙏🏻
For a SIPP, are the beneficiaries defined in 'SIPP framework' legal document as mainatined by staute/FCA and not varied by provider? Where can one read the definitions as to who can be a beneficiary (person/org/company) and any geographical restrictions?
Is there a minimum amount of money you need to have to make it worth speaking to a financial advisor?
What happens if the beneficiary of a DC pension left to them by a person aged 75+ is currently just under the higher rate of income tax for their own income but adding a new income from the bequeathed pension would ordinarily push them into the 40% bracket ? Does HMRC just expect to pay 20% tax despite the new wealth - like it's a parallel income stream - or are they forced to pay 40% on the amount they have now crept into the new bracket by ?
They inherit your pension pot, so up to them how they want to draw an income from it and that would determine how much tax they pay. But they will pay tax as an individual, it can’t be taxed like there’s two people
Very useful video thank you.
need a video after budget ,
working people and pensioners need all the help we can get
It’ll be coming - same day as the Budget
Hi Pete, I have an idea for your next video: I am 55 and recently lost my job. I have built up a fair workplace pension pot but I don't feel it's enough to retire just yet, so I'm looking for another job.
With my potential new employer, should I move my pot to their pension scheme? Or can I get them to contribute to my existing pot? Should I keep them separate? Or should I open a SIPP?
I haven't seen anyone cover this kind of scenario, I hope you can advise, thanks.
Thats a very complicated issue to address in a video and there are many variables: the nature of your current pension, is it dc or db and the nature of your future employers pension scheme which is yet to be determined. Add on that whether your new employer has a comparable scheme.
@@surpriserakins9067 I know. Mine is a DC pension, I don't have a DB. Obviously I won't know the nature of the new employers scheme but I would assume it to be DC again.
Great video. Is there a limit to how much my beneficiaries can receive tax-free from my death in service benefits if I died before 75 while still an active member of my work scheme?
How can we really plan 20 /30 or more years in advance when gov changes every 5 years and alters everything?
Death and taxes are the only certainty in life but the latter is designed to keep you and your future family as poor as possible.
at 1:35 I think you implied but did not confirm that any income/taxable gains on ISAs only refers to those gains after death, not those gained beforehand. Correct?
Yes, that’s right. Only taxable on the estate on any income and gains incurred *after* death.
I was a bit worried for a bit but you both have cleared this up 🎉
@@MeaningfulMoney Are you sure about this? Please comment on my earlier reply questioning this point as it is essential that executors have certainty re: ISA income/growth during the period of administration.
First…finally!
lol!
Hello
My sister died in July aged 56
Her estate is estimated at 1.3 million
My mother who is 91 is named as sole beneficiary of her pension.My question is if a pension is outside of someones estate why have the pension company said it has to be dealt with by probate lawyers?why isnt it just passed on to my mother?and how long dies it normally take for beneficiaries to receive it
Thanks
Depends on the pension - some older schemes may be under a different trust arrangement with absolute beneficiaries. Normally, the pension wouldn’t go anywhere near probate.
I've a separate coffin so it gets buried next to me!
I've just moved my Nest pension out of the default fund. Now I need to transfer in my (tiny) previous pension.
Why transfer to nest for the 1.8% charge for deposit and higher fee.
Move it to a sipp at 0.15% vanguard. That you can add to, or transfer others to as you (May) leave employers.
I agree with @GaryKingdon - I wouldn’t transfer into Nest, but find a better home for your old pensions - Vanguard is one of many good options.
❤❤
Well, this video aged super quick. Just goes tonshow one reslly needs tobbe cinstatnly on top of changes to the lawwwww
Yep. New video coming soon!