Beneficiary of SIPP query
Amy
Member
Good morning, we have a client who passed away a year ago and he had named his wife as sole beneficiary on his SIPP. Wife has lost capacity and son has recently gained POA - taken best part of the year. We were looking to move into beneficiary drawdown with the same provider but as POA involved, no beneficiaries can be named on proposed beneficiary drawdown plan for wife. Have been informed that wife is now in ill health so not sure on our options for moving at all now.
Am I correct in thinking that if this remains in the late husband's name and his wife passes away within at the next year, it will be treated as falling into her estate by way of him naming her a sole beneficiary on his SIPP and him dying before her? At which point it would be payable as a lump sum taxed at 45% under the terms of her Will?
Sorry if this isn't worded very well!