Potential IHT pitfalls for SIPP providers

Within the model Rules of 2000, and its revised form in 2003, a member may direct to whom the lump sum death benefit (upon his death before the pension starts), is payable says commercial law firm, Clarke Willmott. When a member dies, this direction is binding on the trustees and not subject to the trustees' discretion, with the result that the lump sum death benefit is chargeable to Inheritance Tax. The Inheritance Tax Act of 1984 stipulates that where a person has a general power to dispose of property as 'he thinks fit', he is beneficially entitled to that property, which is then at...