SIPP and probate application

Briskly

I'm about to send in a probate application for the estate of my late cousin, who passed away aged 69. He left a SIPP - am I correct in thinking this doesn't have to be declared anywhere on the form? I realise it is not subject to IHT (yet). Grateful for any help.

SadCodeMan

I believe it is the case that, if they gave absolute direction to the pension trustees about what should happen tothe pension then it will be included in the estate. If they just gave an indication of how the pension might be distributed then it should not be included.

The latter is much the more common but I do see that some people fall foul of the former (or decide positively that is what they want to do)

Briskly

Thanks for this - he didn't give any direction to the pension trustees so I won't include it. 

Briskly

PS maybe a silly question but I presume you don't need to put the value of the SIPP in the trusts section of IHT calculator to get the gross and net values? 

NorthYorkie

As stated above, if the trustees have discretion as to how the fund will be applied, it is not part of his estate. Therefore, under current legislation, it does not have to be declared for IHT

Marcon

NorthYorkie said:

As stated above, if the trustees have discretion as to how the fund will be applied, it is not part of his estate. Therefore, under current legislation, it does not have to be declared for IHT

BUT....if the member left an expression of wish form asking for it to be paid to their estate, and the trustees used their discretion to do that, it forms part of the estate - but isn't included when calculating IHT.