FundsNetwork unveils SIPP death benefits IHT solution

The SIPP By-Pass Trust has been set up in response to adviser demand and will help them tackle the increasingly complex tax burden faced by their clients, Fidelity says. The product works by ensuring lump sum death benefits do not become part of a client’s spouse’s estate. The cash instead moves into the SIPP By-Pass Trust and is exempt from a potential 40% inheritance tax hit on the death of the partner. Fidelity says the By-Pass Trust has also been designed to ensure the spouse can still benefit from the lump sum benefits during their lifetime. Paul Kennedy, head of tax and trust ...