If you pass away before taking benefits from your SIPP, it will normally be passed onto your beneficiaries tax-free. However, the options they’ll have will depend on how old you are when you die. If you pass away before you’re 75 the fund will typically be given as a tax-free lump sum. If you die after 75, then your beneficiaries will have to pay tax and be able to choose from drawing a regular income and lump sums.