How do I nominate someone for my pension?

As a rule, pensions don’t form part of the estate for Inheritance Tax purposes but could fall into the estate if they have not been nominated. It may be that you wish to benefit someone else in which case it is recommended that you should do a nomination.

A pension fund is an important asset, and the value of a pension fund can stretch beyond your lifetime and provide funds to your loved ones.

What is a nominated beneficiary?

A nominated beneficiary is your chosen recipient of this lump sum in the event of your death. So, if you die before taking your pension, the lump sum can be given to the person, people, or organisations you care about most.

Who can nominate a beneficiary?

Anyone with a pension under the age of 75 can nominate a lump-sum beneficiary. You don’t have to be married or in any kind of relationship – you can nominate whether you are single, married, or anything in between.

Who can you nominate?

Your nomination doesn’t have to be a person – it’s about deciding what matters most to you. That could be your family, friends, a charity that’s close to your heart, or a combination of them all.

The importance of a nomination form

It is advisable to complete a nomination form – or a letter of wishes – which allows you to choose who you would like to benefit on your death. It is important to check you have completed a death benefit nomination form and that it is reviewed regularly in case circumstances, family dynamics, or wishes change.

What happens if I do not have a nomination?

If you were to pass away without having the correct pension or nomination, it can mean your wishes cannot be met. In the same way that people delay writing a Will, it is important to not delay a review of your pensions too.

How We Can Help

We work alongside the client and their independent financial advisor to discuss pension nominations, if you would like any advice in relation to how Wills and Pensions interact, contact our Wills & Probate team.