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Inheriting a SIPP

reformed nice guy

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reformed nice guy

I have never been able to nail down a straight answer to this question from searching on Google.

If someone has a SIPP and dies, does the person inheriting it receive the "fund" as a SIPP of their own?

I found this:

  • If your beneficiaries choose to take income from the fund they do not need to take the money out within the two-year period but can wait and take income when required. The tax treatment is the same regardless of whether the beneficiaries opt to take a lump sum or income.


If the person inheriting was under 55, would they be able to withdraw inherited fund  or would the person inheriting the fund have to wait until they are 55 (ie, it is treated as an additional SIPP of their own)

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I'd ask your own provider by email so you get something in writing.

This one doesn't say they have to be of pension age



What happens to my SIPP when I die?

When you die, the remaining value of your pension (SIPP) can be passed on to your nominated beneficiaries. If you are yet to do so, you should take the opportunity to notify us of who you would like this to be. You can do that by completing our Expression of wish form. Whilst we, as a trustee, ultimately have discretion as to who any death benefits are paid, we will be guided by your wishes as detailed in the Expression of wish form. The death benefits can either be paid to your beneficiaries as a lump sum or used as an ongoing pension to provide an income and benefit from leaving the money invested in a tax efficient wrapper.







If you die before 75, the money your loved ones receive will usually be tax free.

If you die after 75, the money your loved ones receive will be taxed as income (though they won't pay National Insurance).



Funnily enough I have a SIPP at HL and just last week noticed the section of my account where I could nominate who gets it. I did that and they sent me a letter this week confirming it.

Edit to add, found another that states



Assuming that the pension was designated within the two-year period, then you would be able to draw a tax-free income from the inherited pension pot and you would not need to wait until your 55th birthday - the minimum age from which pension benefits can be taken from personal pension arrangements - to commence taking this income.





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