Fidelity SIPP trust tackles IHT burden

Designed to be used in conjunction with the FundsNetwork SIPP, the By-Pass Trust can protect a client's SIPP lump sum death benefits from a future charge to IHT on the death of their spouse. The trust can be established at the same time as setting up a SIPP or at any pre-retirement point thereafter. One problem that has arisen is following the pre-retirement death of a SIPP member; death benefits are paid to the surviving spouse. Whilst, there is generally no IHT to pay at that time, the problem arises in that the death benefits increase the value of the spouse's estate. This means that...