The importance of reviewing an expression of wishes

We consider pension death benefit options and the need to review clients’ expressions of wishes

April 2020

Barry Foster

Vice President, Strategic & Technical Sales

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PART OF 40 MINS STRUCTURED CPD

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Risk Disclaimer

This content is based on our understanding of legal and tax regulations and practice at the time of writing (October 2019). It has been produced for information only. We do not provide tax, accounting, regulatory or legal advice. No action must be taken or refrained from being taken based on this content alone. Case studies are for illustrative purposes only.

Key takeaways:

  • How pension death benefits may be paid by a scheme
  • What information may be contained in an expression of wishes
  • Why it is key to establish if the scheme administrator is subject to a binding nomination

We consider pension death benefit options and the need to review clients’ expressions of wishes

Pension death benefit options became more flexible from 6 April 2015 when ‘nominee’ and ‘successor’ pensions were introduced. A catch-all term of ‘beneficiaries’ pension is now widely used to incorporate dependants, nominees and successors.

Prior to the Taxation of Pensions Act 2014, although lump sum pension death benefits could be paid to anyone, pension benefits could only be paid to a ‘dependant.’ The removal of this restriction has made pension death benefit planning far more flexible and members are advised to review their pension death benefit options if they have not done so already since April 2015.

The ability to include non-dependent children or grandchildren as nominees will be of interest to some. Not being in a registered legal partnership (marriage/civil partnership) previously had the potential to cause challenges as the dependant status of a partner relies upon “…the opinion of the scheme administrator…” (FA2004, Schedule 28 para15(3)). Unmarried partners can now be nominated by the member and not rely upon the scheme’s opinion of their dependency upon the member.

Download our full article where we review why it is important for clients to understand the death benefit options available under their scheme.

Risk Disclaimer

This content is based on our understanding of legal and tax regulations and practice at the time of writing (April 2020). It has been produced for information only. We do not provide tax, accounting, regulatory or legal advice. No action must be taken or refrained from being taken based on this content alone. Case studies are for illustrative purposes only.

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