What Happens to an AJ Bell SIPP When Someone Dies?

What happens to an AJ Bell SIPP when someone dies?

1AJ Bell SIPP death benefits bypass probate — the fund is paid at the trustees' discretion to the nominated beneficiary
2The full SIPP fund value is payable; beneficiaries can choose a lump sum or AJ Bell inherited drawdown
3The expression of wishes registered with AJ Bell is the key document — trustees have discretion but usually follow a valid nomination
4If the SIPP holder died before age 75, payouts are normally tax-free; if after 75, income tax is payable at the recipient's marginal rate
5From April 2027, unspent AJ Bell SIPP funds will be brought within the scope of inheritance tax

AJ Bell (formerly AJ Bell Youinvest) is one of the UK's leading investment platforms, popular with DIY investors who want control over their pension investments. When an AJ Bell SIPP holder dies, the fund value can be passed to a nominated beneficiary efficiently. AJ Bell SIPP funds fall outside the estate and do not normally require probate.

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Does an AJ Bell SIPP Require Probate?

In most cases, no. AJ Bell SIPPs are held within a discretionary trust structure. The trustees can pay the SIPP directly to the nominated beneficiary without a Grant of Probate, because the funds fall outside the estate.

If there is no nomination and AJ Bell cannot identify a suitable beneficiary, the SIPP may be paid to the estate. In that case, probate may be required.

What Death Benefits Does an AJ Bell SIPP Pay?

The death benefit is the full value of the SIPP at the date of death, including all investments held within it. AJ Bell offers beneficiaries two main options:

Lump sum payment — the full fund value paid as cash
Inherited drawdown — the fund transferred to an AJ Bell SIPP in the beneficiary's name, allowing them to keep the investments and draw income flexibly

Inherited drawdown is particularly valuable for beneficiaries who want to keep the funds invested and benefit from continued tax-free growth (for pre-75 deaths). AJ Bell will explain both options clearly to the beneficiary.

How to Claim AJ Bell SIPP Death Benefits

Contact AJ Bell. Call 0345 689 0100 or visit ajbell.co.uk to notify them of the death. Have the account number or national insurance number ready.
Provide a certified copy of the death certificate.
AJ Bell will review the expression of wishes. If a valid nomination is on file, they will contact the nominated beneficiary.
Choose lump sum or inherited drawdown and complete the required forms.

The Nomination Form: Why It Matters

AJ Bell SIPP holders can register an expression of wishes (nomination of beneficiary) through their online account. The trustees will give this nomination significant weight but retain discretion — keeping the fund outside the estate for IHT purposes.

AJ Bell allows SIPP holders to name multiple beneficiaries with percentage splits. The nomination should be reviewed and updated after any significant life event.

Tax on AJ Bell SIPP Death Benefits

Death before age 75: Lump sums and inherited drawdown withdrawals are normally tax-free for the beneficiary.
Death at age 75 or over: All payouts are taxed as income at the beneficiary's marginal rate (20%, 40%, or 45%).

For the latest guidance, see GOV.UK on tax on pension death benefits.

IHT and AJ Bell SIPPs From April 2027

Currently, AJ Bell SIPP funds fall outside the estate and are not subject to IHT. From 6 April 2027, proposed changes will bring unspent SIPP funds within the scope of inheritance tax. This is significant for AJ Bell customers who have built substantial SIPP pots.

Read our guide to pensions and inheritance tax from April 2027.

If There Is No Nomination Form

Without a nomination, AJ Bell trustees will exercise discretion and typically pay to the surviving spouse or civil partner. If no suitable beneficiary is found, the SIPP may be paid to the estate, making it subject to probate.

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