Does a nomination attached to a personal (SIP) pension take precedence over instructions in a will

TheotherDenis

I am an executor for a relative's estate. The will simply split the estate equally between two sons. The deceased had a personal pension and shortly before death, made a nomination to allocate the value of the pension to three people - the two beneficiaries of the will (their sons) and a third party. To release the money in the pension, all three nominees are required to attest that they are content with the distribution. One is not, saying this three-way split is contrary to the provisions in the will. Does he have a point?

Keep_pedalling

Pensions usually fall outside the estate, so it is likely the will has no bearing on the distribution of the pension.

One of the advantages of a SIPP is that it fall outside the estate so is not subject to IHT.

TheotherDenis

Keep_pedalling said:

Pensions usually fall outside the estate, so it is likely the will has no bearing on the distribution of the pension.

One of the advantages of a SIPP is that it fall outside the estate so is not subject to IHT.

Thanks, yes the pension provider has stated it is not liable for IHT. But I'm not clear if "falling outside the estate" for IHT purposes means that the pension nomination has more force than the will.

relaxtwotribes

This is solely a matter between the Pension Fund Trustees and the three nominees.  The will is an entirely separate matter and the executor(s) are not involved.

Mojisola

TheotherDenis said:

Thanks, yes the pension provider has stated it is not liable for IHT. But I'm not clear if "falling outside the estate" for IHT purposes means that the pension nomination has more force than the will.

It isn't part of the estate.  The money goes directly to the nominees.

doodling

Hi,

In simple terms, the SIPP wasn't owned by the deceased but was held in trust for them.

Because the deceased didn't own it then the will can't determine what happens to it, just as your will can't determine what happens to my car.

It is up to the trustees to distribute the money as they see fit, the deceased has given them a recommendation and I would expect that the trustees would follow that recommendation unless there is a convincing reason otherwise. "It being different to the will" is not a convincing reason.

The only thing that is likely to sway the trustees is a material change to the relationship between the deceased and those nominated since the nomination was made or if the nomination seems particularly odd or unfair.  (E.g. the deceased nominated his girlfriend at the time of the nomination but they have since separated and she is now happily married to someone else, or, he has left his wife, with whom he appeared to have a good relationship, destitute whilst nominating his local football team).