Boring Tuesday question time, apologies.

My current work pension scheme are asking about my intentions for my cash on my passing, options are an Expression of Wish or a Nomination.

A nomination means I select an individual and they get it.

An EOW means the pension firm decide first if my life had changed between making the decision and dying and them handing any cash over to the person named.

Then there was something interesting about the money being inside my estate for tax purposes or not being in.

My other pensions didn’t ask this question, just needed a beneficiary. Not sure if thats to do with DC and DB style pensions.

I can’t see anything changing on a personal front but is there any benefit/reason to go one or the other?

I didn’t know there was a choice.

I have an expression of wish, but my partner decided that wasn’t enough so she marched me down the registry office.

I have an expression of wish, but my partner decided that wasn’t enough so she marched me down the registry office.

Don’t tell her, but probate may require more than just a marriage certificate.

I thought these were different…

Expression of Wish = your death grant – who gets money when you die

Nomination = who get spouse pension (if your pension has one)

Could be wrong, not a pension expert!

We ain’t married either and after 27 years hadn’t really planned on it.

The clip above is taken from my workplace enforced pension providers website.

I think if you nominate then it will fall within estate for inheritance tax purposes but if expression of wishes then it wouldn’t be included because the pension trustees have discretion on who it is paid out to.

I also didn’t realise there was a choice in the matter – might just be down to your pension company.

It’s extremely unusual for a private sector pension scheme to allow you to ‘nominate’ a beneficiary as described. The ability to pay lump sum deaths benefits outside the estate (and free of IHT) is one of the main reasons they are normally written in trust.

If you are unmarried, I would think the ‘expression of wish’ route is the better bet, particularly if you also have property, as you won’t have the same IHT allowances (I administer a large in house pension scheme, and I’m not a Financial or tax adviser so don’t take that as gospel).

Although the ‘expression of wish’ still leaves payment to the trustees’ discretion, they have a duty to exercise that discretion properly, so wouldn’t normally deviate from your wishes without being given a good reason.