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Preserving assets and mitigating risk

Our reader wants to pass his investments onto to his children so should mitigate IHT and reduce risk
April 12, 2017, Paul Derrien & Rick Landucci

Martin Holborow is 66 and runs Bavarian Forest Holidays - a self-catering holiday company. About a year ago his wife sadly died so now his goal is to increase or at least maintain the capital value of his investments, and transfer them tax free to his children at a later date. He has transferred investments worth about £84,000 and cash worth about £13,000 from his late wife's self-invested personal pension (Sipp) into his.

Reader Portfolio
Martin Holborow 66
Description

Sipp, Isa and cash accounts

Objectives

Increase/preserve value of investments to pass on to children

Portfolio type
Inheritance planning

"I drew a first payment from my Sipp of £7,200 in August last year and although the next is due in August this year, I may postpone it for a while in view of the inheritance tax (IHT) benefits of pensions," says Martin. "I am currently adding £200 per month plus £50 tax relief to my Sipp, and I hope this and the dividend income will cover the £7,200 I took out last year.

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