Expression of Wishes for Internationally Mobile Pension Members

For most UK pension members, the expression of wishes form is a relatively straightforward document: a name, a relationship, and a percentage. For an internationally mobile individual — someone who has lived and worked in several countries, has family members spread across multiple jurisdictions, and holds assets in various legal systems — the expression of wishes requires considerably more care.

The stakes are high. UK private pension wealth is estimated by the ONS at around £4 trillion (following a 2025 revision to how defined benefit pensions are valued), making it the largest single component of household wealth. For individuals with pension pots above £100,000, the expression of wishes can direct tens or hundreds of thousands of pounds in death benefits. Getting it right — particularly for cross-border families — can make an enormous difference to the outcome for beneficiaries.

The Legal Status of an Expression of Wishes

An expression of wishes (also called a nomination form or beneficiary nomination) is not legally binding. It is a statement of preference submitted to the pension scheme trustees, who retain discretion to distribute death benefits as they see fit. The trustees are guided by the expression of wishes but are not obligated to follow it.

This distinction matters enormously compared with a will. Your will is legally binding and governs the distribution of your estate. Your expression of wishes is an instruction to trustees — and the trustees must consider it, but may depart from it if they have good reason.

The reason pensions are written this way is deliberate. It allows pension death benefits to remain outside the member's estate for inheritance tax purposes: because the trustees (not the member) own the pension assets and exercise discretion, the assets do not technically form part of the member's estate. This is the mechanism that has historically kept pension funds outside the scope of IHT — though changes enacted in the Finance Act 2026 will bring unused pension funds within IHT from April 2027.

Why Overseas Beneficiaries Complicate the Picture

Most UK pension scheme trustees are experienced in paying death benefits to UK-resident beneficiaries. Paying to an overseas beneficiary introduces several complications:

Identification and verification. Trustees must verify the identity of beneficiaries before paying. For overseas beneficiaries, this may require notarised or apostilled identity documents, bank verification, and often legal translation — a process that can take months and may result in significant delays in distributing death benefits.

Payment mechanics. UK pension schemes typically pay in sterling to a UK bank account. Paying to an overseas account requires a SWIFT transfer, which may involve currency conversion and intermediary bank fees. Some scheme administrators have limited experience with overseas payments, and beneficiaries living in countries with restricted banking systems may find it difficult to receive sterling transfers.

Currency risk. A beneficiary in Thailand, Egypt, or the UAE who receives a sterling lump sum must convert it to local currency. Depending on the timing and exchange rates, the value received in local currency can vary substantially from what was anticipated.

Tax treatment in the beneficiary's jurisdiction. A UK pension lump sum paid to a UK beneficiary who died before age 75 is income-tax-free. The same payment to a beneficiary resident in France or Spain may be treated as taxable income under local law, regardless of its UK tax treatment. The beneficiary's country of residence has its own rules for taxing foreign pension receipts, and the relevant double taxation treaty (if one exists) may or may not provide relief.

Forced heirship. Several jurisdictions — including many civil law countries in Europe and the Middle East — have "forced heirship" rules that require a minimum share of an estate to pass to specified heirs (typically children or spouse). These rules apply to the local estate, not usually to UK discretionary trust assets such as pension funds. However, beneficiaries may face legal challenge from local heirs if they receive pension funds that, from the local perspective, should have formed part of the estate.

Drafting a Robust Expression of Wishes for International Families

Given these complexities, an expression of wishes for an internationally mobile pension member should be more detailed and informative than the standard one-page form. Practical guidance:

Name full legal names. Use the beneficiary's name exactly as it appears on their passport or national identity document. Avoid nicknames or shortened names that could cause discrepancies during verification.

Provide full addresses and contact details. Include the overseas address, telephone number, and email address. Outdated contact information is one of the most common reasons for delays.

State the relationship clearly. "Spouse" is unambiguous; "partner" is not. If the nominated beneficiary is a cohabiting partner who is not legally married and the scheme rules restrict nominations to dependants, clarify the nature of financial dependency (for example, "cohabiting partner of 15 years, with whom I share household expenses and for whom I provide financial support").

Specify language preferences. If a beneficiary is not fluent in English, noting their preferred language allows the scheme administrator to arrange appropriate communications.

Percentage allocation. If you have multiple beneficiaries, allocate percentages that sum to 100%. Do not leave percentages unspecified — "to be divided equally" is acceptable, but specifying percentages is clearer.

Include a default clause. State what should happen if a primary beneficiary predeceases you. For example: "If my spouse has predeceased me, my entire pension death benefit should pass to my children in equal shares."

Accompany with a letter of wishes. Alongside the standard form, consider providing a more detailed letter of wishes explaining the family's financial circumstances, the relationship between beneficiaries, and any special considerations (such as a beneficiary with particular needs). The letter is not itself binding, but it helps trustees exercise their discretion in line with your intentions.

Interaction with the Will

The expression of wishes and the will serve different purposes and should not conflict. Common mistakes include:

• Directing pension benefits in the will. A will cannot direct pension death benefits, because those are under trustee discretion. A clause in a will saying "my pension shall pass to X" has no legal effect — and may confuse the trustees.
• Nominating the estate as beneficiary. Some members nominate "my estate" on the expression of wishes to ensure the will governs distribution. This collapses the pension into the estate and may make it subject to probate and IHT. It removes the discretionary trust benefit entirely.
• Outdated nominations following divorce or remarriage. In England and Wales, marriage does not automatically revoke a pension nomination (unlike a will). An outdated nomination in favour of a former spouse may still be followed by trustees if it is the most recent form on file.

Review both your will and your expression of wishes whenever your family circumstances change materially — marriage, divorce, birth of a child, death of a nominated beneficiary, or a significant change in residence.

The April 2027 Pension IHT Changes

The reforms enacted in the Finance Act 2026 will, from April 2027, bring unused pension funds and death benefits into the taxable estate for IHT purposes. The expression of wishes will continue to direct the trustees' distribution decisions, but the IHT advantage of keeping pension funds outside the estate will be substantially reduced.

This changes the planning priority. The expression of wishes remains important for directing where pension funds go, but the historic strategy of leaving large pension funds untouched to pass tax-free to the next generation becomes less attractive. Clients with substantial pension wealth should review their expressions of wishes in the context of broader estate planning ahead of the 2027 reforms.

Keeping the Form Current

An expression of wishes that has not been reviewed in five or ten years is potentially an expression of wishes for a family situation that no longer exists. Trustees should have a current form on file. Best practice:

• Review the expression of wishes at least every three to five years.
• Review it immediately after any significant life event (marriage, divorce, death of a beneficiary, birth of a child).
• Confirm that the scheme has received and filed the form — request written acknowledgement.
• If you have multiple pension schemes, ensure each scheme has a current form.

This guide provides general information only. The law regarding pension nominations, IHT, and cross-border succession is complex and varies by jurisdiction. Any planning that involves overseas beneficiaries, large pension sums, or complex family circumstances should involve regulated financial advice and, where appropriate, qualified legal advice in the relevant overseas jurisdiction.

How Global Investments Can Help

Global Investments advises internationally mobile clients on structuring pension nominations that reflect complex cross-border family circumstances — coordinating expression of wishes with wider estate planning, the April 2027 IHT reforms, and the tax rules in relevant overseas jurisdictions.

If you have pension assets and family members in multiple countries, contact our advisory team to ensure your nominations are current and fit for purpose.