When you die your SIPP can be passed to your beneficiaries, in most cases free from inheritance tax. Note that Inheritance tax may arise in the event that payments are made to your estate.
If you die before you’re 75, your beneficiaries can normally withdraw what they like from your pension without paying tax.
If you die after your 75th birthday, withdrawals will be taxed as the beneficiary’s income, depending on their withdrawals and other income.
You can nominate one or more beneficiaries. This is usually a spouse or child, but it can be anyone you like and any number of people.
You can nominate your beneficiaries when you set up your SIPP on the Plum application. If you wish to change your beneficiaries at any point, please contact our customer support team and we will help you make any changes you require.
Please remember tax rules may change in the future.