We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
SIPP Inheritance & Taxation
Mothman
Posts: 296 Forumite
I currently have an uncrystalised SIPP and next tax year I will be 65 and my wife will be 75.
If I were to die first before I reach 75 then I understand that my wife can inherit the SIPP tax free. However what happens with any remaining SIPP upon her death, will the tax free status be retained or because she is over 75 will her beneficiaries be subject to withdrawls at their marginal rate?
Just trying to get this clear in my head, as from April 2027 our estate will be in IHT territory and so I need to decide whether I should take my 25% tax free lump sum this tax year to at least protect this portion from possible double taxation.
1
Comments
-
Once the SIPP passes to your wife, it is her age that is relevant. This means that her beneficiaries will be liable for income tax on any withdrawals.I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.2
-
Many thanks for confirming. Makes the decision regarding the tax free cash simpler.HappyHarry said:Once the SIPP passes to your wife, it is her age that is relevant. This means that her beneficiaries will be liable for income tax on any withdrawals.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.7K Banking & Borrowing
- 253.8K Reduce Debt & Boost Income
- 454.6K Spending & Discounts
- 245.7K Work, Benefits & Business
- 601.7K Mortgages, Homes & Bills
- 177.7K Life & Family
- 259.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards