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Interactive Investor (ii) is one of the UK's larger investment platforms, known for flat-fee pricing. The regulated entity is Interactive Investor Services Limited. It offers a SIPP for retirement savings. When an ii SIPP holder dies, the fund value can usually be passed to a beneficiary without a grant of probate.
In most cases, no. The decision over who receives a SIPP death benefit rests with the scheme administrator under the SIPP rules, not with the executor and not with the will. Because the member had no absolute right to direct payment, the fund can be paid to a beneficiary without a grant of probate.
If there is no nomination and no suitable beneficiary, the SIPP may be paid to the estate, potentially requiring probate.
The death benefit is the value of the SIPP at the date of death — including all shares, funds, bonds and cash held within it. Under the pensions tax rules a beneficiary may be able to take it as a lump sum, keep it invested in beneficiary drawdown, or buy an annuity. Not every provider supports every option, and what is on offer changes; ask ii which options apply here rather than assuming. A beneficiary who wants a different platform can generally transfer an inherited pension elsewhere.
ii SIPP holders can register an expression of wishes (nomination of beneficiary) through their ii online account. It carries significant weight but is not binding. That discretion is what currently keeps the SIPP outside the estate for inheritance tax — but only until 5 April 2027, as set out below.
Multiple beneficiaries can be nominated with percentage splits. The nomination should be updated after any major life event. Reviewing and updating through the ii portal is quick and straightforward.
See GOV.UK for the latest guidance on tax on a private pension you inherit.
From 6 April 2027 most unused pension funds and death benefits come into the estate for inheritance tax. HMRC's policy paper of 26 November 2025 confirms the change applies "regardless of whether the pension scheme administrators or scheme trustees have discretion over the payment of any death benefits", so the discretion described above will no longer keep the fund outside the estate. Death in service benefits payable from a registered pension scheme are excluded, but an unspent SIPP fund is not one of those.
The spouse, civil partner and charity exemptions are kept, so a fund passing to a surviving spouse or civil partner remains exempt. Personal representatives, not scheme administrators, are liable for reporting and paying any inheritance tax due, and can direct a scheme to withhold 50% of the benefit for up to 15 months while that is settled.
Read our full guide to pensions and inheritance tax from April 2027.
Without a nomination, ii exercises its discretion and will typically pay 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.