Sterling Bond help!!!

absolute0

My father has a Sterling investment bond, he passed away earlier this year and I am dealing with the probate as executor. My mother is sole beneficiary.

All financial accounts have gone through probate fine apart from Sterling.

I'm being told that in order to get the bond into my mothers name I would need to get a solicitor to write up a deed of assignment. Is this normal practice? Does anyone know of an estimated cost of doing this?

Many thanks

Dave

dunstonh

I'm being told that in order to get the bond into my mothers name I would need to get a solicitor to write up a deed of assignment. Is this normal practice?

A solicitor may not be required. Some insurance companies have their own deed of assignment forms.

If the bond was single owner (your father) then it may just be easier to get the proceeds paid out and reinvest rather than assign it. Although that depends on financial circumstances as there are times it could be better not to have it paid out. If it was in trust, then there may be other issues.

All financial accounts have gone through probate fine apart from Sterling.

Remember that this is a life assurance policy, not an account.

absolute0

Thanks for your response.

We know the policy hasn't been performing as well (obviously due to financial times), but have been told that it should improve. In addition there would be an exit penalty applied. My mother used to get a monthly income from the bond, and that is what she would like to continue.

I'm not sure that the IFA that setup the bond can undertake the deed of assignment. I will ask.

dunstonh

We know the policy hasn't been performing as well (obviously due to financial times), but have been told that it should improve.

The policy doesnt perform at all. Its just a tax wrapper. A container for investments. The investments are what perform and there are wide range to pick from that cover all risk profiles. It should have been doing better over the last 12-18 months. Investments always zig zag. There will always be major economic events and market crashes. Typically every 7 years as an average. You average out those downs with the ups.

In addition there would be an exit penalty applied.

Have you had that confirmed? Normally the 5 year exit penalty is waived on death.

I'm not sure that the IFA that setup the bond can undertake the deed of assignment. I will ask.

The IFA cant create one but they can find out if the insurer has one.

absolute0

Just had the exit penalty confirmed at 4% due to my mother being life assured on the policy.

The problem we have is that the original IFA, just recently, has been taken over by a different company and therefore we would need to engage with the new company. In addition my parents weren't particularly happy with the IFA after it was sold to them and decided not to use them again (probably not a wise move). Which just adds a little more complexity to the situation.

dunstonh

Just had the exit penalty confirmed at 4% due to my mother being life assured on the policy.

Is she also an owner on the policy (i.e. joint owner, joint life?). Normally where its joint life second death and joint owner, no assignment is required as the second owner becomes the owner.

absolute0

I don't believe she is an owner because they both took out separate policies. Its also not in trust.

dunstonh

absolute0 wrote: »

I don't believe she is an owner because they both took out separate policies. Its also not in trust.

Thats a shame its not joint owner as well as joint life. That would have been easier. So, assignment does look like the only option.

Give sterling a call and ask if they have a form to cover that. I had a clerical medical one last year in a similar position and we used their form with no need to get a solicitor.

absolute0

I've already asked Sterling on numerous occasions and they don't provide any form of documentation for the process. Shame.

By the way, thanks for your help