Expression of Wishes..or not!

Chapter73

Could someone enlighten me as to whether ecoression of wishes linked to a sipp, are more robust than those on a ssas.

It galls me that i cant precisely guarantee that my money goes where i want it to on death, after saving hard for 53 years.

Can anyone guide me please.

Many Thanks

xylophone

Below examples from SIPPS.


https://www.jameshay.co.uk/OldCMS/DocumentView.aspx?DocumentID=64

This Expression of Wish is not binding on the Trustee(s) but will help them when considering who is to receive benefits upon your death.

https://www.ajbellplatinum.co.uk/sites/ajbellplatinum/files/AJB_SIPP_Expression_of_wishes_guide_and_nomination_form_1.pdf

Can I give you a binding instruction rather than an expression of wishes?
No, we do not accept binding instructions, as giving a binding instruction would make it very likely that the benefits would be subject to Inheritance Tax.
Where payment of death benefits is made at the discretion of AJ Bell, as the scheme administrator, this significantly reduces the chances that some or all of your pension will be subject to Inheritance Tax after your death.

squirrelpie

It galls me that i cant precisely guarantee that my money goes where i want it to on death

You can guarantee it, but that involves also guaranteeing that it will be taxed. You have to decide whether you trust your chosen SIPP provider or would rather pay the tax.

Silvertabby

As xylophone says, payment at 'the trustees discretion' = 'payment (ideally) direct to named beneficiary and so exempt IHT/probate etc'.

However, it also gives the trustees the 'get out clause' of paying any monies to the Estate in the event of very complicated cases. I've seem some very interesting ones in my time in the LGPS - including cases of no expression of wish form, no spouse or children, but a hoard of warring siblings all screaming for payment. There was even a case of an unknown child popping up and trying to claim dad's death grant. His birth certificate didn't give his father's details, so he tried to insist that the LGPS exhumed the body in order to carry out a DNA test... That one went to the solicitor/executor.

MEM62

Chapter73 wrote: »

It galls me that i cant precisely guarantee that my money goes where i want it to on death, after saving hard for 53 years.

It is extremely rare that trustees will overrule your wishes and, should they do so, they are accountable to have to have clear reasoning as to why. There are those rare occasions when it is appropriate for the trustees to make a decision in these matters and these protections are there for a reason.

In your case I am sure that the money would be disposed of in accordance with your wishes. I wouldn't wind yourself up too much over this just because you don't have your 100% guarantee. It's a non-issue.

Chapter73

As i am not bothered re inheritance tax, as i wish to just leave to my spouse, how would guaranteeing work please?

Chapter73

MEM62 wrote: »

It is extremely rare that trustees will overrule your wishes and, should they do so, they are accountable to have to have clear reasoning as to why. There are those rare occasions when it is appropriate for the trustees to make a decision in these matters and these protections are there for a reason.

In your case I am sure that the money would be disposed of in accordance with your wishes. I wouldn't wind yourself up too much over this just because you don't have your 100% guarantee. It's a non-issue.

Thankyou. I hope you are right. Perhaps ive been reading too many articles!

Chapter73

Silvertabby wrote: »

As xylophone says, payment at 'the trustees discretion' = 'payment (ideally) direct to named beneficiary and so exempt IHT/probate etc'.

However, it also gives the trustees the 'get out clause' of paying any monies to the Estate in the event of very complicated cases. I've seem some very interesting ones in my time in the LGPS - including cases of no expression of wish form, no spouse or children, but a hoard of warring siblings all screaming for payment. There was even a case of an unknown child popping up and trying to claim dad's death grant. His birth certificate didn't give his father's details, so he tried to insist that the LGPS exhumed the body in order to carry out a DNA test... That one went to the solicitor/executor.

Blimey, hope they dont dig me up....or try and rehydrate my cremains, like you do when making instant mash!

xylophone

Blimey, hope they dont dig me up....or try and rehydrate my cremains, like you do when making instant mash!

Cremated remains?:eek:

Chapter73

.Cremains...apparently its what “those in the know” call ashes! ��

atush

If you are married, it will go to your spouse.

Where it might not, is if you filled out your wish form when married, then later divorced. So they might pay out to a child, parents or sibling instead for instance.