What Happens to a Vanguard SIPP When Someone Dies?

Does a Vanguard SIPP Require Probate?

In most cases, no. Vanguard SIPPs are held within a discretionary trust structure. 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, requiring probate before distribution.

What Death Benefits Does a Vanguard SIPP Pay?

The death benefit is the full value of the SIPP at the date of death — including all Vanguard funds and cash held within the SIPP. Vanguard offers beneficiaries the option of:

• Lump sum — the full fund value paid in cash
• Inherited drawdown — the fund transferred to a SIPP in the beneficiary's name, allowing them to keep the money invested and draw income flexibly

Vanguard's SIPP platform is relatively straightforward, focused on passive index investing. Beneficiaries who prefer active management can take the lump sum and invest elsewhere.

How to Claim Vanguard SIPP Death Benefits

1. Contact Vanguard. Visit vanguardinvestor.co.uk or call 0800 587 0460 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. Vanguard 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 claim forms.

The Nomination Form: Why It Matters

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

In practice, Vanguard almost always follows a valid, current expression of wishes. Members should update their nomination after any significant life event. Vanguard allows the nomination to be updated quickly online.

Tax on Vanguard 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.

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

IHT and Vanguard SIPPs From April 2027

Currently, Vanguard 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 material change for anyone using SIPPs as a tax-efficient way to pass wealth to the next generation.

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

If There Is No Nomination Form

Without a nomination, Vanguard trustees will exercise discretion. They will 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