Expression of Wishes and Pension Nominations: Why This Document Is Critical

Of all the administrative tasks connected with pension planning, completing and maintaining an Expression of Wishes is perhaps the most neglected. Clients who have spent years carefully managing their pension contributions and investment choices sometimes have an outdated nomination form sitting on file with their pension provider — one that names a former spouse, a deceased parent, or simply nobody at all. We have seen the consequences of this, and they are serious. This guide explains what an Expression of Wishes is, why it occupies the legal position it does, when and how to update it, and how we approach it with every client.

What Is an Expression of Wishes?

An Expression of Wishes (EoW) — sometimes called a nomination of beneficiaries, a beneficiary nomination form, or a death benefit nomination form — is a document completed by the pension scheme member and submitted to the trustees or scheme administrator. It sets out who the member would like to receive their pension fund or death benefits if they die before drawing all of their pension.

For defined contribution pensions and SIPPs (Self-Invested Personal Pensions), the death benefit is the remaining fund value — potentially a very substantial sum for clients who have built up savings over a career. For defined benefit schemes, there may be a lump sum death-in-service benefit during the accumulation phase (typically two to four times salary), as well as the dependant's pension that the scheme rules provide for automatically.

The EoW is submitted to the trustees, held on file, and used by the trustees to guide their decision when the member dies. Most schemes will contact the nominated beneficiaries, explain the options available to them, and arrange for the fund to be distributed.

The Legal Position: Discretion, Not Entitlement

This is the point that most people find counterintuitive: an Expression of Wishes is not legally binding. Completing the form does not guarantee that your nominated beneficiaries will receive the money. The pension trustees retain discretion to pay the death benefits to whoever they decide is appropriate, taking into account the EoW and any other information available to them.

Why is it designed this way? The answer lies in inheritance tax. If the pension fund passed automatically and legally to the nominated beneficiaries — in the way that a Will bequeaths assets — the pension fund would be treated as part of the deceased's estate and potentially subject to 40% inheritance tax. Because the trustees retain discretion, the fund does not form part of the estate. It sits outside the estate, and no IHT is charged on it.

In practice, the vast majority of trustees follow the EoW closely, particularly when it is up to date, clearly completed, and names people with an obvious connection to the deceased. The combination of a well-drafted EoW and trustees who follow it means that, in most cases, the practical outcome is the same as if the nomination were binding — but without the IHT exposure. This is why we regard the EoW as one of the most important estate planning tools available to pension holders.

DC Pensions and SIPPs: Provider-Held Nominations

For personal pensions and SIPPs, the Expression of Wishes is typically held by the pension provider. When a client holds pensions with multiple providers — which is common for anyone who has changed jobs or consolidated savings over the years — there may be separate EoW forms required for each provider.

This is an area where clients frequently have gaps. A client who consolidated three old workplace pensions into a SIPP five years ago may have completed an EoW with the SIPP provider at the time, but the form may be out of date if their family circumstances have changed. Meanwhile, any remaining pensions with other providers may have EoW forms from years earlier, naming entirely different beneficiaries.

Part of our pension review process involves identifying every pension a client holds, confirming which providers hold an EoW, and reviewing whether the nominated beneficiaries are correct and the proportions are appropriate.

Defined Benefit Schemes: Nomination Forms

For defined benefit pension schemes — whether a former employer's occupational scheme or a public sector pension — the process is similar in principle but operates through the scheme's own internal nomination system rather than via an external provider. Members of DB schemes can typically complete a nomination form requesting that any lump sum death-in-service benefit or discretionary lump sum be paid to specified individuals.

It is worth noting that the dependant's pension payable from a DB scheme on the member's death is not at the trustees' discretion in the same way — it is paid automatically under the scheme rules to whoever qualifies as a dependant. But any additional lump sum death benefit is subject to the nomination mechanism, and keeping the nomination form updated is equally important.

What to Include in an Expression of Wishes

A well-completed Expression of Wishes should include:

Primary beneficiaries: The full legal name, date of birth, address (including country of residence for overseas beneficiaries), relationship to the member, and the proportion of the fund each should receive. Most clients nominate their spouse as the primary beneficiary for the full fund, with adult children as secondary beneficiaries if the spouse has predeceased.

Proportions: If more than one primary beneficiary is named, specify the percentage of the fund each should receive. Proportions should add up to 100%.

Alternative beneficiaries: Name secondary beneficiaries in case the primary beneficiary predeceases the member or is otherwise unable to receive the funds. Without secondary beneficiaries, the fund reverts entirely to the trustees' discretion.

Any specific instructions: Some EoW forms allow for brief additional instructions — for example, requesting that the trustees consider a dependant's drawdown arrangement rather than a lump sum, or noting that a beneficiary lives overseas and may require an international payment.

Regular updates: The form should be dated and signed. Many providers request updates every few years even if nothing has changed, simply to confirm the nominations remain current.

When to Update Your Expression of Wishes

The EoW must be kept current to reflect your actual circumstances and wishes. Events that should trigger an immediate review include:

Marriage or remarriage: If you wish your new spouse to be the primary beneficiary, they need to be named. A previous spouse remains on the form until you change it.

Divorce or separation: An ex-spouse named on the EoW may still receive your pension fund unless you update the nomination. Unlike a Will, which is automatically revoked on remarriage in England and Wales, an EoW is not automatically updated by any life event.

Birth or adoption of a child: If you wish to include children as beneficiaries — particularly as secondary beneficiaries — they need to be added.

Death of a named beneficiary: If a primary beneficiary dies before you and you do not update the EoW, the fund may pass to remaining beneficiaries in unexpected proportions, or to secondary beneficiaries if named.

Significant change in a beneficiary's circumstances: A beneficiary who becomes bankrupt, loses capacity, or moves to a different country may raise practical or legal issues that affect how and whether the fund can be paid to them as originally planned.

Overseas Beneficiaries: No Restrictions

There is no legal restriction on naming a beneficiary who lives outside the UK. Pension providers and trustees are accustomed to overseas beneficiaries, though the administrative process may take longer than for UK-resident recipients. For clients with overseas spouses or family members, we ensure that the EoW includes sufficient detail — full name, date of birth, country of residence, and contact details — to enable the trustees to locate and communicate with the beneficiary without delay.

The tax treatment of pension death benefits received by an overseas beneficiary will depend on the double taxation agreement between the UK and the beneficiary's country of residence, as well as the age-at-death rules (tax-free if death before 75; taxable at the beneficiary's marginal rate if death at 75 or over). We cover this in detail in our dedicated guide on pension death benefits for non-domiciled spouses abroad.

Naming a Trust as Beneficiary

In more complex estate planning scenarios, it is possible to nominate a discretionary trust as the beneficiary of pension death benefits. This is most commonly used when:

• The intended beneficiaries include minor children who cannot receive large sums directly
• A primary beneficiary has their own large estate, and receiving additional pension funds would create an IHT problem for them
• There are concerns about a beneficiary's ability to manage a large lump sum (due to capacity, vulnerability, or susceptibility to influence)
• The client wants the pension fund to remain available for multiple beneficiaries over time, without being consumed immediately

Using a trust as the pension beneficiary — often called a bypass trust — can keep the pension fund outside both the member's estate and the beneficiary's estate, potentially eliminating an IHT exposure across two generations. This is specialist planning territory and requires advice from both a pension specialist and an estate planning solicitor.

The 2027 IHT Changes: Why the Framework Is Changing

The government's 2024 Autumn Budget announced that unused pension funds and death benefits will be brought within the scope of inheritance tax from 6 April 2027. This was legislated in Finance Act 2026, which received Royal Assent on 18 March 2026. This will materially alter the IHT advantage that makes the discretionary EoW arrangement so valuable.

Under the legislation, the deceased's personal representatives are responsible for reporting and paying any IHT due on unused pension funds, working alongside scheme administrators — a significant administrative and financial change. The existing exemption for funds passing to a surviving spouse or civil partner is being retained. Clients with large pension pots — particularly those who have been deliberately preserving DC or SIPP funds for inheritance purposes — should be aware that the planning landscape is changing materially from April 2027.

We are monitoring these developments closely and will advise clients on any necessary adjustments to their planning when the position becomes clearer.

Our Process for Expression of Wishes Reviews

At Global Investments, we treat the Expression of Wishes review as a standing agenda item in every annual pension review. We write to every provider on behalf of our clients, confirm the current nomination on file, and where necessary assist clients in completing updated forms. For clients with multiple providers — or who have not reviewed their EoW in several years — this exercise regularly uncovers nominations that need updating.

How Global Investments can help

The Expression of Wishes may be a single page of administrative paperwork, but its consequences can be profound. We have worked with families where an outdated or missing EoW led to lengthy delays in distributing pension funds, legal disputes between beneficiaries, and outcomes that were entirely contrary to what the deceased would have wanted. Getting it right is not difficult — it simply requires attention and a systematic review process.

Our advisory team ensures that every client's Expression of Wishes reflects their current family circumstances and estate planning objectives, and that it is held on file with every relevant pension provider. For clients with complex family structures, overseas beneficiaries, or large pension pots, we can also advise on whether more sophisticated arrangements — such as trust nominations — are appropriate to their situation. Please note that pension rules and tax rates can change, and this guide reflects the position as of June 2026. We always recommend taking regulated advice tailored to your personal circumstances before making any decisions about your pension death-benefit arrangements.