SIPP on death - nominating someone living abroad

redwing

Hello all

I've searched this and other forums but not found any information on this query:

I am considering nominating my three adult children to receive a share of my SIPP - maybe 10% each with 70% going to my wife. I'm expecting to live to 75 so they would have to pay tax on the money as they withdraw it. So far so straightforward. The complication is that one child lives abroad in the EU, won't be coming back, and so won't pay UK tax. 

Does anyone have any experience of this or can offer suggestions on what would happen to this child's share?

Thanks!

dunstonh

The complication is that one child lives abroad in the EU, won't be coming back, and so won't pay UK tax. 

Not a complication.   As long as they are updated with the correct addresses making it easy for communication to occur.

Does anyone have any experience of this or can offer suggestions on what would happen to this child's share?

For lump sum payments, it will be no different to the others except it will use a different payment method (e.g. SWIFT instead of BACs/CHAPS).  If they want to use beneficiary drawdown then it will be significantly harder as the EU does not allow UK companies to offer their products and services to EU residents unless the firm is authorised within the resident country or has passporting permissions to operate in the EU country of residence.   Most do not.   There are routes to do it but its more expensive.    Hopefully, in time the EU will offer the UK better access but we are still in the punishment stage at the moment.