What Happens to a Fidelity SIPP When Someone Dies?

What happens to a Fidelity SIPP when someone dies?

1Fidelity 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 Fidelity inherited drawdown
3The expression of wishes registered with Fidelity is the key document — trustees have discretion but almost always 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 Fidelity SIPP funds will be brought within the scope of inheritance tax

Fidelity International is a global investment management company with a large UK SIPP platform serving both retail and workplace pension customers. When a Fidelity SIPP holder dies, the fund value can be passed to a nominated beneficiary efficiently. Fidelity SIPP funds fall outside the estate and do not normally require probate.

Have more questions on UK death administration? Let Farra help.

Talk to Farra →

Does a Fidelity SIPP Require Probate?

In most cases, no. Fidelity SIPPs are held within a discretionary trust. The trustees can pay the fund directly to the nominated beneficiary without a Grant of Probate, because the funds fall outside the deceased's estate.

If there is no nomination and Fidelity cannot identify a suitable beneficiary, the SIPP may be paid to the estate, potentially requiring probate.

What Death Benefits Does a Fidelity SIPP Pay?

The death benefit is the full fund value at the date of death — including all funds, shares, and cash held within the Fidelity SIPP. Fidelity offers beneficiaries the following options:

Lump sum — the full fund value paid as cash
Inherited drawdown — the fund transferred into a Fidelity pension in the beneficiary's name, allowing flexible income withdrawals while keeping the fund invested
Annuity purchase — using the fund to provide a guaranteed income

Fidelity is particularly well-suited to beneficiaries who want to keep the money invested in a diverse range of funds. Their inherited drawdown offering is fully featured.

How to Claim Fidelity SIPP Death Benefits

Contact Fidelity. Call 0800 368 1732 or visit fidelity.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.
Fidelity will review the expression of wishes. If a valid nomination is registered, they will contact the nominated beneficiary.
Choose your preferred option (lump sum, drawdown, or annuity) and complete the required forms.

The Nomination Form: Why It Matters

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

Fidelity allows multiple beneficiaries with percentage splits. The nomination should be updated after any significant life event — marriage, divorce, the birth of a child, or the death of a named beneficiary.

Tax on Fidelity 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 Fidelity SIPPs From April 2027

Currently, Fidelity SIPP funds fall outside the estate and are not subject to inheritance tax. From 6 April 2027, proposed changes will bring unspent SIPP funds within the scope of IHT.

Read our guide to pensions and inheritance tax from April 2027 and the current IHT thresholds.

If There Is No Nomination Form

Without a nomination, Fidelity trustees will use their 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 and estate administration.

Related Guides