I have inherited a portion of a SIPP, from a relative, and wish to transfer this to an InvestEngine SIPP. I understand that an inherited SIPP is treated differently from one into which investments have been placed by the SIPP holder, and I have seen the term “Beneficiary SIPP” used. Are InvestEngine able to provide me with a SIPP for this purpose, and does anyone have any experience of this situation?
Hi Mike,
I’m sorry to hear about your relative.
When someone inherits a SIPP, the account will already be considered ‘crystallised’, which is also known as ‘in drawdown’.
Currently, InvestEngine is not able to accept a transfer for these types of accounts. Building this capacity is part of our near-term future roadmap.
However, anyone inheriting a pension may have the option to withdraw the pension as cash and make a separate contribution to a new or existing InvestEngine SIPP.
This would be subject to relevant eligibility, pension rules and contribution limits.
This would also be subject to tax treatment of inherited pensions, which can depend on factors including the age of the previous pension holder at their death, the type of pension arrangement, the timing of withdrawals and the inheritors individual tax position.
Whether this is suitable will depend on individual circumstances. Anyone inheriting a pension should consider taking advice from a financial or tax adviser before deciding what to do next.
I do hope this information helps, but it is not personal advice. I am not a tax or financial adviser and InvestEngine does not provide tax or financial advice.
All the best,
Bob