cashing in endownment

zoeypoey

My long time partner, has sold his property and wants to cash in his friends provident endownment. The endownment was taken out with his ex partner over 20 years ago. Unfortunately his ex partner is refusing to sign the surrender forms or even discuss the issue. His ex partner has not contributed financially to the endownment, but unfortunately my partner never removed her name from the endownment.
Is there anyway my partner can surrender the endownment without her signature? If not is there anyway we can surrender the policy and resolve this issue?
The stress of this is making my partner ill.:mad:

dunstonh

Is there anyway my partner can surrender the endownment without her signature? If not is there anyway we can surrender the policy and resolve this issue?

It needs to go through a solicitor and pressure put on that way.

JimmyTheWig

How long was the endownment for? I.e. how long is left to go?
If it was to cover a 25 year mortgage then it can only have a few years left to run.
I believe that you generally get more for these things if you leave them to run their term.

holly_hobby

There is no legal requirement for her to remove herself, as there was insurable interest at the commencement of the contract.

If she won't agree to her removal, the only avenue may well be through legal channels (court). As Duns. states requiring the services of a solicitor.

With regards to early surrender if this is a with profits endowment, then there may be the addition of a further terminal bonus (in addition to the annual reversionary bonuses already added) upon maturity. So surrender early may not only cost legals, but the forfeit of an addition (possibly healthy) bonus.

The addition of a terminal bonus on maturity is NOT guaranteed. Your partner may be able (if close to maturity) to get a ball park figure of the final maturity value from FP.

Hope this helps

Holly

Pekie

Hi, I'm in a similar position with regard to cashing in my endowment. My wife and I are going our separate ways and we have an endowment which has 18 months to run. It has performed very well over the last 23.5 years and has come through a couple of recessions in tact and showing a healthy profit.
We both need to buy again but we don't know whether to take out interest only mortgages and pay them off when the endowment matures or just cash it in now and take the hit of losing terminal bonuses.. Can anyone comment?? Thanks

JimmyTheWig

I haven't got any facts to back this up, Pekie, but I would be shocked if the answer was to cash it in now.
If you can, somehow, afford to keep paying it then I would have thought this had to be the best plan.