What Happens to an Interactive Investor SIPP When Someone Dies?

Does an Interactive Investor SIPP Require Probate?

In most cases, no. ii 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 no suitable beneficiary, the SIPP may be paid to the estate, potentially requiring probate.

What Death Benefits Does an ii SIPP Pay?

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

• Lump sum — the full fund value paid as cash to the nominated beneficiary
• Inherited drawdown — the fund transferred to an ii SIPP or another provider, allowing flexible income withdrawals

ii is popular with active investors who hold a range of securities. Beneficiaries who prefer a different platform can take the lump sum and invest elsewhere, or transfer the inherited drawdown to their preferred provider.

How to Claim ii SIPP Death Benefits

1. Contact ii's bereavement team. Call 0345 607 6001 or visit ii.co.uk to notify them of the death. Have the account number or national insurance number ready.
2. Provide a certified copy of the death certificate.
3. ii will review the expression of wishes. If a valid nomination is on file, they will contact the nominated beneficiary.
4. Choose lump sum or inherited drawdown and complete the required documentation.

The Nomination Form: Why It Matters

ii SIPP holders can register an expression of wishes (nomination of beneficiary) through their ii online account. The trustees give this nomination significant weight but retain discretion — maintaining the trust structure that keeps the SIPP outside the estate for IHT purposes.

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.

Tax on ii 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%).

See GOV.UK for the latest guidance on tax on pension death benefits.

IHT and ii SIPPs From April 2027

Currently, ii 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. This is a significant change for ii customers who have used their SIPP as a tax-efficient estate planning tool.

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

If There Is No Nomination Form

Without a nomination, ii 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 and estate administration.

Related Guides

• Pensions and Inheritance Tax from April 2027
• Inheritance Tax Guide 2026/27
• Complete UK Probate Guide
• What to Do When Someone Dies
• Estate Administration Checklist
• Notifying Banks After a Death
• Applying for Probate
• Probate Threshold 2026/27
• Inheritance Tax Basics
• The 7-Year Gifting Rule