Personal investment plan advice

janeg88 · 24 Jan 21, 09:21 PM

Firstly I know any advice I get from here is just that advice and not necessary the letter of the law but last time I asked I got great tips so that when we met with the solicitor I had a good idea what he was talking about.

Mum died last year and all her money has passed to me by a deed of variation to the will.

Both her and dad (still very much alive) had personal investment plans current value Ł200000 ish each.

The solicitor advised this is not part of her estate so I’ve not received this instead it passes to dad and then to me on his death.

Are we best just to leave it where it is or should we withdraw some and what are tax implications?

I read you could withdraw 5% a year without tax implications.

Trying to get to speak to someone is a nightmare

**THE WIZARD** · 25 Jan 21, 10:32 AM

Only one piece of advice = get yourself a GOOD INDEPENDENT FINANCIAL ADVISOR ASAP.
I don't mean an accountant! Interview a few, ask friends if they have one, choose who ever you feel 100% comfortable with.
Yes you will pay for the privilege of having one but you will have someone with the knowledge to ADVISE you where the best legal Tax Efficient places are to put your money.
Good Luck

Leggibone · 25 Jan 21, 02:32 PM

Originally Posted by janeg88

Firstly I know any advice I get from here is just that advice and not necessary the letter of the law but last time I asked I got great tips so that when we met with the solicitor I had a good idea what he was talking about.

Mum died last year and all her money has passed to me by a deed of variation to the will.

Both her and dad (still very much alive) had personal investment plans current value Ł200000 ish each.

The solicitor advised this is not part of her estate so I’ve not received this instead it passes to dad and then to me on his death.

Are we best just to leave it where it is or should we withdraw some and what are tax implications?

I read you could withdraw 5% a year without tax implications.

Trying to get to speak to someone is a nightmare

The tax implications very much depend on the type of plan, with the disaster of the last year I would suggest that tax is going to see some changes int he next couple of years, so talk to an adviser. And they can talk to you and your dad about the specifics of the plans.

tspill · 25 Jan 21, 02:43 PM

I think you need to speak to a estate/tax specialist in this field. An IFA may also help with the investment side, but I think you need to understand the tax and estate elements initially.
PIPs can be complex. I, along with with my BiL have just gone through exactly this when both my PiL passed last year (seems a very similar situation to yours). We spent a couple of weeks trying to work out the detail od how they worked (we had a little help from a friend who is specialist in the area who was able to check what we had done).
The tax rules and calculations can be extremely complex for a PiP. Much more complex that just withdrawing 5% per year.

You can try and understand them yourself - takes a fair bit of work and effort. If you can do that, there are spreadsheets available online that you can use to work all out the calculations. But you 1) need to be confident you fully understand them; and 2) trust the spreadsheets.
In the end, we ended us doing our own spreadsheets to check that they tallied with the ones online. That gave us the confidence we had got it right.

Lumpy · 25 Jan 21, 04:39 PM

I would echo the previous advise re IFA. Do your research and find and IFA who works with tax and estate planners. The company I use have all these fields of expertise in house so it is a one stop shop albeit dealing with several people within the business but it does mean they are able to advise me well. Although there is a cost to this they have always saved me more than their fees have cost me.

janeg88 · 25 Jan 21, 09:34 PM

Thanks everyone! We are absolutely going to get proper advice I just like to be forearmed with as much knowledge first!

25 Jan 21, 02:43 PM	#4
	25 Jan 21, 02:43 PM tspill Imagineer
tspill Imagineer Join Date: Feb 13	I think you need to speak to a estate/tax specialist in this field. An IFA may also help with the investment side, but I think you need to understand the tax and estate elements initially. PIPs can be complex. I, along with with my BiL have just gone through exactly this when both my PiL passed last year (seems a very similar situation to yours). We spent a couple of weeks trying to work out the detail od how they worked (we had a little help from a friend who is specialist in the area who was able to check what we had done). The tax rules and calculations can be extremely complex for a PiP. Much more complex that just withdrawing 5% per year. You can try and understand them yourself - takes a fair bit of work and effort. If you can do that, there are spreadsheets available online that you can use to work all out the calculations. But you 1) need to be confident you fully understand them; and 2) trust the spreadsheets. In the end, we ended us doing our own spreadsheets to check that they tallied with the ones online. That gave us the confidence we had got it right. Edited at 02:46 PM.

25 Jan 21, 04:39 PM	#5
	25 Jan 21, 04:39 PM Lumpy slightly serious Dibber
Lumpy slightly serious Dibber Join Date: Apr 08	I would echo the previous advise re IFA. Do your research and find and IFA who works with tax and estate planners. The company I use have all these fields of expertise in house so it is a one stop shop albeit dealing with several people within the business but it does mean they are able to advise me well. Although there is a cost to this they have always saved me more than their fees have cost me.