A nomination of beneficiary form (also sometimes known as an expression of wish form) tells the pension scheme who you would like to receive your pension when you die.
What your beneficiaries get depends on what type of pension scheme you were in. Money from pensions after death are called pension death benefits. We have more information on pension death benefits in what happens to my pension when I die. An up-to date form can make things easier for loved ones as it could mean pension death benefits are paid out quicker.
What is a beneficiary nomination or expression of wish form?
A beneficiary nomination or expression of wish form is a form, which can be online or in paper, where you fill in who you would like to receive your pension death benefits. These death benefits don’t need to be paid to one person, and they can be paid to family, friends, charities or a trust.
Why nominating your beneficiaries matters
Many pensions are currently not part of the estate for inheritance tax purposes. Your will could say that everything goes to one person, but your nomination form could say that you want your pension money to go to someone else.
But in most cases, the pension provider will make the final decision about where the money goes and that’s what keeps it out of the estate. The pension provider will try to make sure that the money goes to who you would want it to. Having an up-to-date form is good evidence of what you want. For more information on the way in which pensions can be set up together with information on income tax payable by beneficiaries, and proposed inheritance tax changes please see What happens to my pension when I die.
An up-to date form can also mean that pension death benefits are paid out quicker and that will help loved ones.
When to update your beneficiaries
It’s not only important to write a form but also to review it regularly especially if there are key life events such as;
- Marriage or civil partnership
- Divorce or separation
- New children or grandchildren
- Death of an existing beneficiary
- Changes in financial needs or relationships.
Even if nothing has changed then it’s a good idea to keep written evidence that you have checked your form and no changes are needed.
What happens if you do not nominate anyone?
In most cases, the pension provider will decide if you haven’t filled in a form. That can take a lot more time as they will have to request a lot more evidence to try to understand what your wishes would’ve been.
Passing your benefits on?
There are two ways to tell us how to pass your benefits on, you can either:
- Complete our form online
- Or use our mobile app