Beneficiary nomination provides an alternative to setting up a plan trust. It may be an option if your client's situation is more straightforward and they know who they currently want to benefit. We'll automatically pay any benefit after your client dies to their nominated beneficiary. And there's no need for probate or the completion of a trust form.
For more complicated needs they should still consider a trust.
No, the nomination can only be done as part of the initial submission of the application. To add nominated beneficiaries at this stage you'd need to complete a new application
No, you can still apply for this combination of covers on the lives of different people. As long as the person covered for each cover is also the plan owner, each person can then nominate their own beneficiary.
If there is no trust or nominated beneficiary the payment of the plan may be delayed while probate is obtained. The payment will then be made to the personal representatives not direct to the lender. It could therefore be several months before the mortgage can be repaid. Writing the plan in trust or nominating a beneficiary means the claim can be paid without probate so cash can be made available to repay the loan much quicker.
If they are each taking out their own cover then either a trust or nominating a beneficiary is almost essential as neither party is entitled to any of the other’s estate unless there is a will giving them that right.
No, our beneficiary nomination doesn’t allow you to name a lender as this would be a direct benefit to your estate as it would be meeting your liability. For beneficiary nomination to be effective you must not be able to benefit yourself.
If it’s a single plan you can’t have both beneficiary nomination and a trust at the same time. If you’re considering a trust for one part, then we would suggest all covers should be under trust.
No, once you have nominated a beneficiary you can change to someone else or write the plan under trust at a later date but you can’t remove all beneficiaries as to be effective it must not be possible for the plan to come back into your estate for your benefit.
Usually yes, especially if they don’t have wills as they would not be entitled to anything from each other’s estates.
You can still recommend the plan is written under trust but unless it actually is, then you shouldn’t reflect anything other than that recommendation in the fact find as it isn’t in trust.