Legal News | 2.03.23

One SIPP at a time?

While the importance of having an up to date, valid Will is well-known, many clients are surprised to find that their Will does not cover their Self Invested Personal Pension (SIPP).

Your SIPP does not form part of your estate on your death, so it won’t be covered by your Will (and won’t form part of your estate for inheritance tax purposes).

Who receives your SIPP after your death is in the hands of the pension provider trustees, so it’s important for them to know your wishes.

Any expression of your wishes is not legally binding as the pension provider trustees have a duty to ensure the money is paid to the appropriate people.  However, if you have not made your wishes clear for them, then this will likely lead to delays and expense, as well as the risk of your wishes not being followed at all.

The advice is to make sure you have completed the SIPP provider’s ‘nomination’ or ‘expression of wishes’ form…. and to keep it up to date!  You may have completed the form years ago when you opened the SIPP, and never thought to have looked at it since.

Using the occasion of updating your Will to review your SIPP arrangements makes sense, and you can store a copy of your wishes with your Will.

If you have any questions or wish to update your Will, please contact Wansbroughs’ Private Client team on wealth@wansbroughs.com.