Martin Lewis urges Brits to make simple money check to stop exes inheriting savings
Martin Lewis has issued a fresh warning to millions of Brits when it comes to who gets your inheritance - and making sure it doesn't go to one of your ex partners.
It all comes back to your pension, both private and workplace. I know what you're thinking - 'boring'. Pension talk is just, sure, that but the last thing any of us want is for us to pass away and our money go to a former partner who we might not have had the nicest of break ups with. So listen up.
In his weekly Money Saving Expert (MSE) newsletter to his thousands of subscribers, Martin Lewis says issues are often found when it comes to updating your 'expression of wishes' on the pension schemes that you hold throughout your life.
It makes sense when you sign up to one of these jobs to leave your cash to your long term partner, or husband / wife, but should your relationship status with these people change, you effectively need to let every pension scheme you hold know that too, and crucially, nominate who your money must then go to instead. If you happen to pass away with money in these pension pots, your expression of wishes usually have to be followed when it comes to who the pension provider has to legally give the cash to.
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Avoid 'nightmare' situations
"You can't usually leave pension savings in your will," Lewis says in his latest newsletter.
"If you die without taking it, or there's still money in your pension, the provider / trustees decide what to do with it.
"Instead, when you sign up to a Money Purchase type scheme or similar you usually fill out an expression of wishes (aka a nomination form), which tells the trustees your preferences.
"They usually follow this but don't have too. Yet many people don't update these as life changes, so check and update your expression of wishes - it's important. I've had too many messages like this X post over the years."
One of Lewis' followers contacted him on social media saying: "It's just happened to us! My mother-in-law died... only for her pension firm to want her ex's details.
"They split 20 years ago! She'd be spitting feathers if she knew!"
Another said: "Had a case where a colleague's ex-husband was still on her nomination form. Family had to contest. A nightmare for all involved."
Who can you nominate?
Pretty much every workplace or private pension is known as a Money Purchase pension, where you build up the cash in the post via investing during your time contributing.
You can leave these pension pots to absolutely anybody. Your partner, best mate, any relative, any child you have, or even a neighbour.
"You can also usually nominate charities, if you wish to," MSE says.
Old school pensions are the other kind of pot that might need changing. These are known as 'final' salary or 'average' salary, while officially labelled Salary Schemes.
These pensions have specific rules on beneficiaries depending on each scheme, so you'll have to check in.
Topics: Martin Lewis, Money, Sex and Relationships, UK News
Tom Earnshaw