Pensions are an essential part of your retirement planning and provide you with a source of income when you finish work.
Part of pension planning involves nominating beneficiaries who will receive your pension benefits after you pass away.
Is my pension included in my Will?
Pensions are outside of your estate and therefore typically exempt from inheritance tax. However, as they are outside of your estate then they are not included in your Will.
How do I nominate a beneficiary of my pension?
You need to contact your pension provider(s) and ask for an ‘Expression of Wish’ form. On this form you can nominate who you wish to receive your pension when you pass away, you can note down a percentage you want them to receive and if you want them to receive monthly income or a lump sum.
If you have multiple pension providers – which the majority of people do as you often start a new pension every time you change job – then you need to fill out a form with each provider.
When you pass away, your executors should follow your expression of wish form when dividing your pensions.
Can I change my pension beneficiaries?
When you are alive, you can contact your pension provider and ask for a new ‘expression of wish’ form and you can change your beneficiaries as and when you choose.
Common reasons for changing beneficiaries may include marriage, divorce or the birth of children and/or grandchildren.
It is important that you do review your beneficiaries to make sure that your pensions are distributed according to your wishes.
Can my pension beneficiary be changed when I die?
In most cases, the beneficiaries of a pension cannot be changed when you die. Occasionally there are legal challenges that allow for changes to be made to your beneficiaries after you die but this has to go through legal proceedings and is complex. t is also a service that would be separate and distinct to those offered by St. James’s Place.
Seek financial advice
To avoid complications and disputes over your beneficiaries, it is important that you have an estate plan in place. Estate planning tools such as wills, trusts, and powers of attorney can provide you with greater control and flexibility over the distribution of your assets, including pension benefits. Estate planning will help ensure that your wishes are followed when you pass away.
To help you to make the best decisions for you and your loved ones, you can book a no-obligation meeting with a financial adviser at Four Wealth Management. Meetings can be at your home address, at one of our offices or on zoom.
Book a meeting online now or call us on 0117 973 0500.
The value of a pension will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief is dependent on individual circumstances.
Will writing and Powers of Attorney involve the referral to services which are separate and distinct to those offered by St. James’s Place and along with Trusts are not regulated by the Financial Conduct Authority.
