When people come to us to review their pension planning one of the things we always ask is ‘if something happens to you what would you want to happen to your pensions?’
A common belief here is that they would be passed on in line with your will – but this is not the case. Pensions sit outside of your estate and therefore fall outside of the instructions in your will. This is good news for Inheritance Tax planning, but not so good news if it’s not clear where your pension benefits should go.
Thankfully there’s a handy form known as an “expression of wish” which enables you to nominate one or more people to benefit from your pension plans should you die before retirement. This gives the pension trustees clear guidance as to your wishes should the worst happen.
This question is nearly always asked when you first join a scheme or take out a personal pension plan, but after that it’s up to you to ensure that it remains up to date.
Given the fact that life sneaks up on us and changes happen so quickly it’s not surprising that we often come across plans with nominations that are no longer appropriate for members.
Pension trustees and Scheme Administrators do rely on these to ensure that benefits are paid quickly, and to the right people so it’s really important to ensure they’re updated.
We’re always happy to have a chat to people to ensure that your pensions are right for you, and that they would go to the right people should the worst happen so if you’re at all concerned about your pensions then please do get in touch and we’ll do our best to help.
Jon Bean
Chartered Financial Planner
Carter Thompson Wealth Management
