Expression of wish form / beneficiaries for pension - changing when lost mental capacity?

squirrelpie

I think he should send a secure message to ii asking them what the best way for him to indicate his wishes is. It might also be a sensible time to explain his prognosis and your involvement as an LPA so it is not a surprise to them if and when he loses capacity.

Albermarle

 Their pension has a completed expression of wish form but we have agreed verbally that this might change next year, if the parent is still alive, given the pension estate changes from April 2027.

It is not obvious ( to me anyway) why unused pension pots coming under IHT from April 2027, would mean a change in beneficiaries would be needed.

It would be interesting if you could explain the basis of that scenario.

Linton

https://forums.moneysavingexpert.com/discussion/comment/81911278#Comment_81911278

I would put it more strongly. Whilst your parent has mental capacity, even if it is only occasionally, your authority as LPA is only to help them action their wishes. You have no authority to implement your own agenda without their knowledge and agreement.

When the donor has permanently lost mental capacity an LPA only has the authority to manage the donor's assets in the donor's best interests. Acting for the purpose of advancing other people's interests without the authority of the Court of Protection is not permitted and in extreme cases has led to criminal prosecution.

I suggest that if you do try to get the Expression of Wishes changed you make it clear that the form was filled in by yourself at the expressed request of your parent (if that is the case). Perhaps getting a witness that the parent did in fact express the request whilst mentally capable may be appropriate and helpful.

Note that there is no requirement on the pension company to follow the Expression of Wishes. They may make their own enquiries and choose to dispose of the pension differently.

itwasntme001

https://forums.moneysavingexpert.com/discussion/comment/81911582#Comment_81911582

It is to avoid paying any IHT; if parent passes before April 27 no IHT and assets passed to children. If passes after April 27, then there is IHT and given available nil rate band, prefer assets to pass to spouse using spouse exemption.

itwasntme001

https://forums.moneysavingexpert.com/discussion/comment/81911626#Comment_81911626

Wouldn't it be enough if my parent did actually fill out the expression of wishes form now on the ii platform, explicitly stating that come April 2027, they would like to change the beneficiaries to "xxxx"? So I would not be changing anything, it would simply be my parent who currently does have mental capacity.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81911675#Comment_81911675

The ii online expression of wish (EOW) form is extremely simplistic and only accommodates single choices of beneficiaries. These are:

• A dependant
• An individual beneficary
• A registered charity
• A Trust

Within those options you can indicate what percentages go to each.

What the form does not do is to provide for conditional changes to the choice, based on future events.

I appreciate, that your parent has elected to currently pass the Sipp to children ( rather than spouse), and this choice will be IHT inefficient after April 2027.

Your quandary is you don't know when the parent will die, and if this occurs before the changes to regime, the current EOW serves the original purpose of IHT free benefits to children.

However, if the parent loses the mental capacity to change the EOW ( if surviving to 2027), you are apparently locked into a choice that potentially creates an IHT liabilty depending on the size of the SIPP.

Your parent could try to talk to ii to see if they can offer a bespoke EOW solution to the problem here, but I would be doubtful.

Linton

https://forums.moneysavingexpert.com/discussion/comment/81911675#Comment_81911675

Yes, your parent can do whatever they want with their assets. It is only when you get involved acting as LPA that restrictions may arise.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/81911837#Comment_81911837

Whilst a lot of providers still have the old-fashioned template, most will accept written instructions with those.

itwasntme001

https://forums.moneysavingexpert.com/discussion/comment/81911837#Comment_81911837

But ii do have a space/box in their online EOW section to add additional comments. Presumably it is there which my parent would need to add their wish for beneficiary change/allocation come April 2027 for the pension administrators to consider following parent passing.