In the event of your passing, your SIPP can typically be passed on to your beneficiaries, and it is usually exempt from inheritance tax.
It's important to note that inheritance tax may apply if payments are made to your estate.
Here's how it works:
If you pass away before reaching the age of 75, your beneficiaries can usually withdraw funds from your pension without incurring tax.
If you pass away after your 75th birthday, withdrawals will be subject to taxation based on the beneficiary's income and withdrawals.
You have the flexibility to nominate one or more beneficiaries.
While it's commonly a spouse or child, you can choose anyone you prefer and designate any number of beneficiaries.
You can specify your beneficiaries when you set up your SIPP using the Plum application.
If you ever need to change your beneficiaries, please reach out to our customer support team, and they will assist you in making the necessary adjustments.
It's essential to keep in mind that tax regulations may change in the future, so it's a good practice to stay updated.