Family
SIPPs
The
Finance Act 2004, changed the position
in regard to what happens when the owner of a SIPP dies.
From April 6th 2006 the fund can be passed on, after death
benefits have been paid out, to a spouse or children or
grandchildren, with one important proviso being that they
all have SIPPS from the same provider, (The MW SIPP in our
case).
Any such transfer is free of Inheritance Tax under the current
proposed legislation.
The pension scheme member would have to make a direction
as to his preferred option while still alive. This means
you can leave the legacy of a pension scheme to the succeeding
generations, perhaps at a time when State Pension may not
be so good in the future.
You should also note here that it is not necessary for the
beneficiary to be a family member. It is only required that
they be a member of the same scheme (The MW SIPP).
We
have further leaflets about Family SIPPS.
