Will (life insurance & pension)

halfajack

I recently signed up for life insurance based on my mortgage with Beagle Street. They offer a free will service through a local solicitor and I've just returned a questionnaire to them. The form was very basic but the guidance notes mentioned additional services (such as advice about protecting the home from care costs). I've written a note at the end saying I have a life insurance policy which is in trust for a named beneficiary (my partner) who I've also named as sole beneficiary of my estate. I'm also paying into a teacher's pension scheme (Scotland) and intend to nominate my brother and sister to receive the death grant if I die in service. I asked in the note if I'm right in thinking I don't have to mention these in the will and they won't be included in the estate. I think it's probably a simple query and I was just noting it for peace of mind, but I have a feeling they might contact me to offer advice at a fee.

dunstonh

I asked in the note if I'm right in thinking I don't have to mention these in the will and they won't be included in the estate.

Correct. Neither would form part of your estate. (think about where the money goes. its not paid to you or your estate. Its paid directly to the beneficiaries).

halfajack

Thanks, dunstonh. I did think as much but wanted a bit of reassurance from someone who know better, which you've provided! I would hate to think my brother and sister would get nothing because I didn't mention the pension in my will, though I realise that might seem an irrational worry.

InsideInsurance

The will is there to define what happens to your estate, as these two dont form part of the estate there is no need for them to be mentioned.

Of course people include all sorts of other things in their wills, supposedly including things like:

Anthony_Scott wrote:

To my first wife Sue, whom I always promised to mention in my will. Hello Sue!

For your life insurance and DiS policies both are written into trust and so not part of the estate and it is the trustees that will decide who gets the money. For DiS you should fill in a nomination form and clearly the trustees should follow this, though sometimes it can come under question. For example my ex boss had a bitter divorce with his wife, no kids, and had since remarried. His original nomination form was to is first wife. HR had a record of a new nomination form having been received after the divorce but the form itself, and contents, had been lost so the Trustees had to make the decision.

Your own life insurance written in trust is similar, you will have nominated the trustees who will deal with the monies on your death. You need to ensure you have appointed appropriate people and most likely not just your wife otherwise you have issues when both you and your wife dye together.

Some do occasionally include instructions in their will in the hope it will be passed to the trustees, and in my former bosses case the trustees did ask for a copy of the will to try and get guidance on what was likely to have been on the lost form, but not strictly necessary.