Ssas/sipp or divorce!

Chapter73

Good Afternoon

I at a stage now in life where although I am thinking of taking a tax free lump sum from my ssas, i want to leave the remainder for my spouse, should anything happen to me before her.


I have signed an expression of wish form, but have been informed that these are open to interpretation and could be challenged, which makes me a little miffed.

I have had 3 people tell me 3 different things

One said make her a trustee on the ssas (not sure how as she doesnt work at the companyj

Another has mentioned that if i put my money into a sipp it would be easier to guarantee where it goes (again, this would be okay as i dont really use the ssas now for its functions)

and finally, someone else has told me , the only way to guarantee this is by divorcing then remarrying,(the same wife of course)

Any thoughts please?

xylophone

https://www.retirement-planner.co.uk/234988/paul-darvil-sipp-and-ssas-death-benefits-can-be-confusing-its-an-age-thing

may be worth a look.

It seems to me to be very unlikely that there would be any challenge to your widow as beneficiary of your pension.

Chapter73

Thankyou xylophone for the link. Very good of you.

Marcon

Chapter73 wrote: »

I have signed an expression of wish form, but have been informed that these are open to interpretation and could be challenged, which makes me a little miffed. Such forms aren't binding - paying at the discretion of the trustees means that under current legislation death lump sum payments are generally tax free. Technically a disappointed party could challenge how the trustees have chosen the recipient, but it is rare for a challenge to succeed if the trustees have followed a sensible procedure (basically considered all relevant factors and taken a decision based on these, rather than taking into account factors which are not relevant; has not reached a decision which no reasonable person would have reached; and ensured they have followed whatever the scheme rules permit in terms of potential recipient

I have had 3 people tell me 3 different things

One said make her a trustee on the ssas (not sure how as she doesnt work at the companyj Wouldn't help anyway - she'd be conflicted so couldn't vote on the recipient of the death lump sum

Another has mentioned that if i put my money into a sipp it would be easier to guarantee where it goes (again, this would be okay as i dont really use the ssas now for its functions) True although the same challenge is theoretically possible

and finally, someone else has told me , the only way to guarantee this is by divorcing then remarrying,(the same wife of course) Garbage

Any thoughts please?

Make sure you keep your Expression of Wish form up to date (every couple of years), tell your fellow trustees that's definitely what you'd like to happen - and don't worry too much about it.

Chapter73

Marcon , thankyou for the detailed reply.
If its not too cheeky, are you able to tell me why a sipp would be easier please.
Many thanks

Marcon

Chapter73 wrote: »

Marcon , thankyou for the detailed reply.
If its not too cheeky, are you able to tell me why a sipp would be easier please.
Many thanks

With a SSAS, decision are taken by the trustees of the scheme, who generally have little or no experience of such matters. Occasionally this leads to delays in decision taking, or a perverse decision - but not often. Incidentally, even if your wife became a trustee, quite apart from being conflicted it's more than a little unlikely that she will have some sort of majority vote, so I think you can safely disregard that bit of 'helpful' advice.

SIPPs are run by professionals who are well versed in their running and the various life/death events associated with them and it is even rarer for them to depart from the SIPP owner's nominated beneficiaries.

Chapter73

Marcon wrote: »

With a SSAS, decision are taken by the trustees of the scheme, who generally have little or no experience of such matters. Occasionally this leads to delays in decision taking, or a perverse decision - but not often. Incidentally, even if your wife became a trustee, quite apart from being conflicted it's more than a little unlikely that she will have some sort of majority vote, so I think you can safely disregard that bit of 'helpful' advice.

SIPPs are run by professionals who are well versed in their running and the various life/death events associated with them and it is even rarer for them to depart from the SIPP owner's nominated beneficiaries.

Thankyou very much for the advice.
I shall investigate the cost of moving into a sipp as an exercise.
I am also now considering whether it might be more simple to start a flexi drawdown and just put the drawdown money in my wifes name.
Still womdering why divorce idea is nonsense?

xylophone

Does your wife have her own pension provision?

What is your (and your wife's) position in regard to state pension?

Marcon

Chapter73 wrote: »

Thankyou very much for the advice.
I shall investigate the cost of moving into a sipp as an exercise.

Might be worth taking some professional advice from someone who fully understands your circumstances and the rules of your particular SSAS. Answers on this site are of necessity based on sweeping generalisations and very limited information - and it would be a shame to take a sledgehammer to what could turn out to be a small, defenceless peanut!

xylophone

Might be worth taking some professional advice from someone who fully understands your circumstances and the rules of your particular SSAS.

Look for expert, independent advice.

https://adviserbook.co.uk/

Tick "confirmed independent" and such other specialisms as required.

Chapter73

Thanks xylophone
Just on a quick point of reference, can i leave the ssas and let the other member stay in