If you die before you are able to access your retirement savings, the money that is saved in your retirement pot will be payable as a lump sum to your beneficiary or beneficiaries at the discretion of the Trustee. Usually your beneficiaries won’t pay any personal or inheritance tax on the sum they receive.
The Trustee will decide how to share it out but may be guided by your wishes.
Initially, the Trustees will make suitable enquires to identify potential beneficiaries. They will then consider all circumstances including:
- ● Any nomination made by you on an Expression of Wish Form
- ● The contents of your final Will;
- ● Whether there are any other relevant circumstances, such as the beneficiary’s age and needs?
- ● Whether any beneficiaries were financially dependent on the member during his or her lifetime or at the date of the member’s death?
- ● Have the beneficiaries been provided for financially by the member in another way?
The Trustees don’t have a set priority list in which money should be distributed. However, they are likely to have a regard to individuals who were most dependent on you during your lifetime.
If you would like to guide the Trustee by nominating beneficiaries, please download the Expression of Wish Form and post it back to the address given on the form.
You do not have to complete an Expression of Wish Form, however if you do, it is extremely important to keep this up to date to make sure it reflects any changes in your personal circumstances over time. This is particularly important if a nominee dies before you, or if your relationship with a nominee detailed in your Expression of Wish Form changes. There are many life events that may prompt you to review the nomination on your Expression of Wish Form. These include:
- ● A marriage or civil partnership.
- ● Separation, dissolution or divorce.
- ● The birth or adoption of a child.
- ● The death of a nominee.
Your nomination is not binding on the Trustee, although it provides an indication of your wishes at the time the nomination was made.
You can nominate your beneficiaries by completing an Expression of Wish Form and posting it back to the address on the form.