SIPP with no beneficiaries

HERMANOPRIMERO

Hi,

If I have a SIPP without any nominated beneficiaries how is the distribution of funds handled after death (under 75)?

Is it possible to nominate my estate so that the Will handles the distribution?

Also, if there is a drawdown account is this just treated as part of the estate?

Many TIA!

Keep_pedalling

I don’t think that is possible and even if it was it could creat an IHT issue for your estate. 

Marcon

HERMANOPRIMERO said:

Hi,

If I have a SIPP without any nominated beneficiaries how is the distribution of funds handled after death (under 75)?

Is it possible to nominate my estate so that the Will handles the distribution?

Yes, if the rules of your SIPP permit you to do so. It can be very useful to pay IHT without your personal representatives having to borrow. 

Provided the payment to the estate is discretionary, it is not (under current legislation) subject to IHT. If the default position of your particular SIPP is that payment will be to the estate if there are no nominated beneficiaries, then it will become subject to IHT.

Marcon

Keep_pedalling said:

I don’t think that is possible and even if it was it could creat an IHT issue for your estate. 

It's much misunderstood - my own SIPP provider (a major player) didn't understand the true position but does now...

See https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm17052

Silvertabby

Back in my LGPS days, when someone said that they didn't need an expression of wish form (for the one-off lump sum death benefits, if applicable) 'because they didn't have anyone to leave it to'  I would ask who would arrange/pay for their funeral in the event of their death.  99% did have someone to nominate after all ...