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To Sipp or not to Sipp, can we keep it in the family??

Many people have been reading the plethora of comment extolling the virtues of self-invested personal pensions. Mr Brown clearly had other more pressing issues to talk about and so the concept of the “family Sipp” did not appear at the despatch box.

Much of the renewed interest surrounding Sipps has centred on the idea of a family Sipp arrangement, where the client can invest into a tax-efficient retirement planning vehicle with access to a much wider choice of assets than perhaps they have been accustomed to holding in “conventional” pension funds.This alone would be an attractive incentive for a financially aware client to explore Sipps with his or her IFA. The family Sipp concept takes this a stage further, offering the client the opportunity to make arrangements that could include their family as potential beneficiaries. Add on top of this the facility to include residential and commercial property as an asset held within the arrangement and CGT and IHT benefits come into the equation. Clarification is still needed to crystallise the IHT ramifications of this brave new world arrangement but the indicators are positive.

Budget time should always be a catalyst for IFAs and their clients to take stock of their financial planning arrangements. The future of the family Sipp may well be the right course of action to be considered for the right client wanting to take a proactive and involved role with their IFA in planning their retirement.

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