If you have pension plans from previous employment, do you know who you will receive your pension if you die?
Completing a nomination form specifies what you would like to happen to your death benefits or to place your death benefits under trust. Without a nomination form, your wishes may not be fulfilled as the pension trustees or administrators have discretion over who they pay death benefits.
New pension flexibilities have made death benefits on pensions a good savings vehicle for inheritance planning. The changes in rules now allow an individual to:
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pass funds down through the generations via flexi-access drawdown.
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pay death benefits to a far wider range of beneficiaries than previously available
It is important to bear in mind that it may be impossible to make use of these options if your pension plan or scheme doesn’t offer them.
If you have pensions that can’t facilitate the new freedoms your beneficiaries could find that the only option available to them is annuity purchase or to take a lump sum (which may not be the most tax efficient option).
It is really important that you:
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check with your pension provider that your death nomination form is up to date
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check with you pension provider that new pension flexibilities apply to your plan
Alternatively contact us at Platinum and we can guide you through the process and co-ordinate this on your behalf.
We look forward to working with you.