Interaction between Death Grant nomination & a Will

[CoolHands]

I have searched but can't find relevant info. I have completed a Death Grant Nomination by my pension provider. (I understand the two great benefits of this are that the money goes to the nominee on receipt of the death certificate - this cuts out waiting for Grant of Probate; and secondly as a discretionary payment it is not subject to inheritance tax which it otherwise would be if it went to your estate).

However, my question is: suppose I nominate my cousin (for arguments sake) to receive 100% of the Death Grant, what would happen if in my Last Will & Testament (writing that there to help search terms) I made no reference to it? ie I just stated I want my estate to go to (my Father, lets say)?

Reading all the pension info it seems pretty clear the pension trustees will simply pay the death grant to the nominee, but I am just wondering about this point.

[randlemarcus]

But the point of it is that it doesn't form part of your estate, so the nominees are quite right to not care what you write in your will.

You don't have it before death, and you don't have it after death.

[CoolHands]

ok thanks

[The Leaper]

OP,

You are wrong to assume that if you fill in and submit a nomination form (always a good idea and always keep it up to date as your circumstances/wishes change) the trustees will always pay the death benefits to the person(s) you nominated. The trustees will look at your circumstances when you die and then decide who should receive the benefit. The trustees may or not fully or partially follow your nomination. The reason the trustees do this is because too many people do not keep their nomination up to date. For example, many such forms will say something like "Please pay to my wife xxxxx". If you divorce and do not submit a changed nomination form the trustees, if they followed you original form, will pay your ex wife, probably something you would not wish to happen.

The two big reasons for completing a nomination form are that the death benefit is paid under a discretionary trust outside of your will so will avoid inheritance tax, and secondly it means that there's no need for the trustees to go through all the usual will/probate procedures so they can pay the death benefits reasonably soon after the death has occurred.

So, always complete the nomination form and, equally important, always keep it up to date to match your changing circumstances.

R.

[The Leaper]

OP,

PS...

If you are thinking of nominating your cousin, I suggest that you check with the trustees that cousins are included in the list of beneficiaries they can pay the benefits to as described in the pension plan rules. I suspect all is OK but best to check first.

R.

[CoolHands]

OK good to know thanks all. It's interesting to find out about this stuff.