Why completing a beneficiary form for your pensions is essential

Did you know that your Will doesn’t directly cover the money in your pension pots, nor who inherits it? So informing your pension providers about your desired beneficiaries is absolutely essential.

Your chosen beneficiaries can inherit any remaining money in your pension pot that you haven’t yet spent or converted to an annuity. This makes your pension a very tax-efficient way to pass on your wealth – and one that you can even use to reduce inheritance tax (IHT) on the rest of your estate.

But how do your death benefits, after you pass find their rightful recipients? And how do you make your wishes known?

Enter the expression of wishes! This handy tool allows you to inform the scheme administrator about who you want to receive these benefits.

Your pension isn’t legally part of your estate. So is not covered by your Will. You have to make arrangements with your pension provider by filling in a form – this may be called an ‘expression of wish’ form or a ‘nomination of beneficiaries’ form, or something similar.

You also have the flexibility to update your beneficiaries whenever you need to. Life is constantly changing, and so are your circumstances. By keeping your expression of wishes up to date, you ensure that your loved ones are taken care of.

By failing to update your expression of wishes and neglecting this important step, you may limit the options for your beneficiaries.

Don’t leave your loved ones in the dark! Keep your expression of wishes up to date and ensure that your hard-earned money goes exactly where you want it to. Also, keep your will up to date. Though it doesn’t directly cover your pensions, it can help to resolve any disputes that may arise.