News · 25 April 2026
Inherited pensions can't be passed to your children
Unsplash / Elijah Macleod
Numerous individuals who receive inherited funds, frequently those approaching their own retirement, intend to transfer these assets directly to their offspring, thereby precluding the emergence or expansion of an Inheritance Tax responsibility. However, inherited pensions, such as a £150,000 SIPP, cannot typically be passed directly to new beneficiaries. This is due to the fact that the administration of self-invested personal pensions usually falls under a discretionary trust framework, granting the trustees the full authority to designate beneficiaries following the holder's demise.
Reported by fidelity.co.uk · How we write briefs