The Inherited Sipp

[Noslien]

Suppose Person A dies with a Sipp valued at £500k. Person A's spouse has already died. Person A's has 2 children and the expression of wishes that he has lodged with his Sipp provider calls for an equal split of assets between the children. Person A's Sipp portfolio consist of investment trusts and some cash. B&C ( the children) are quite happy to each have the half the shares and cash i.e. they dont wish to change the investments.

So what would happen? And what would the costs be? Presuming a death certificate is provided then the Sipp manager can charge for the establishment of 2 new Sipps. Paperwork to be completed by B&C. The manager doesn't have to trade any investments because they are all held as nominee accounts anyway. The manager just has to split the shares and cash 50:50 between the 2 new Sipps. Is it more complicated than that?

Grateful for any comments, or if any one has experience of this type of situation.

Regards

Noslien

[swill453]

AJBell have a page on SIPPs and death, which may be useful https://www.ajbell.co.uk/pensions-and-r ... -and-death

Scott.

[seagles]

Hargreaves Lansdown, have a fact sheet that helps lon this

[Charlottesquare]

Suppose Person A dies with a Sipp valued at £500k. Person A's spouse has already died. Person A's has 2 children and the expression of wishes that he has lodged with his Sipp provider calls for an equal split of assets between the children. Person A's Sipp portfolio consist of investment trusts and some cash. B&C ( the children) are quite happy to each have the half the shares and cash i.e. they dont wish to change the investments.

So what would happen? And what would the costs be? Presuming a death certificate is provided then the Sipp manager can charge for the establishment of 2 new Sipps. Paperwork to be completed by B&C. The manager doesn't have to trade any investments because they are all held as nominee accounts anyway. The manager just has to split the shares and cash 50:50 between the 2 new Sipps. Is it more complicated than that?

Grateful for any comments, or if any one has experience of this type of situation.

Regards

Noslien

What operative status is his SIPP when he dies, it it capable of not going into SIPPs but into cash would be my first question?

Re costs I am dealing with one right now (death before vesting and before age 75, expression of wish to spouse in place), the fee we have been quoted for its cash encashment is £360 .

Embark are acting for Hornbuckle and to date we have exhibited to them death cert (original), copy will submitted , investigated if dependents, completed forms re each executor (despite the funds not being part of estate re will), completed form expressing what wanted (transfer or encashment), completed form re what advice taken and I believe there is still yet a further form once the most recent are processed- it has not been quick as rather than sending out everything at outset you send them forms and only once they have them to they send you further forms, with current postal delays I do not yet see the end in sight.

[Noslien]

Thanks Charlottesquare. A really useful reply.

I should have been clearer that I was thinking of the post 75 situation where the Sipp couldn't be taken as tax free cash. Nevertheless you post is very informative and confirms my suspicions that the process can be time consuming and a little convoluted. I expect if you were splitting shares between two benficiaries the costs could amount to many hundreds more

Regards

Noslien