Transfers On Death

Death Benefit Distributions – Transfers Out

When a member dies, the fund may be left to beneficiaries who decide to set up SIPPs for drawdown purposes rather than just taking a lump sum.

If the beneficiary sets up a SIPP with the same provider, these payments are just internal distributions rather than normal transfers.

The payments out of the original SIPP are entered as bank transactions with a type of Transfer Out. In the Members, Transfers Out screen, the transfer can be imported and the box for Internal Death Transfer ticked.

When the fund split is run, these distributions will be taken into account. This can be useful where one beneficiary retains the non-cash assets of the deceased member and so the records are kept in the original Omni record.

Death Benefit Allocations - Transfers In

The Omni record for the new SIPP for the beneficiary will be set up and the credit of the above payment to the new bank account is recorded as a Transfer In.

In the Members, Transfer In screen this payment can be imported and then the box for Internal Death Transfer ticked.

This is then taken into account in the fund split calculations, especially if the beneficiary decides to make their own contributions and transfers (which would be stored under a separate member record).

XL reports

Death Transfers are not included in the reports on transfers in or out of the SIPP but there is separate report for Death Transfers on the Member tab of XL Reports.