PTM071300 - Death benefits: essential principles: definition of nominee and successor
As of 6 April 2024 there is no longer lifetime allowance. If you are looking for information about protections, enhancement factors and the lifetime allowance charge please see these pages on The National Archives.
If you are looking for information about the principles of lifetime allowance and benefit crystallisation events please see these pages of The National Archives.
Glossary |
Following the death of a member a pension may be paid from a money purchase arrangement to a nominee. Schemes may pay a nominees’ pension in addition to, or as an alternative to paying a pension to a dependant. A money purchase arrangement may also pay a pension to a successor following the death of a dependant, nominee or another successor. Where there is more than one nominee or successor, pension schemes can choose to pay a pension to each nominee or successor. Who may be paid a pension will depend on the terms of the pension scheme.
Meaning of ‘nominee’
Authorised benefits payable to a nominee
Meaning of ‘successor’
Authorised benefits payable to a successor
Meaning of ‘nominee’
Paragraph 27A Schedule 28 Finance Act 2004
Only an individual can be a nominee.
A dependant of the member cannot be a nominee. For this purpose, the definition of dependant does not include a child of the member age 23 or older unless they are a dependant because of physical or mental impairment, or the transitional provisions described in PTM071200 apply.
To be a nominee that individual must have been nominated by the member to receive benefits under the arrangement following their death.
An individual can also be a nominee if they have been nominated by the scheme administrator to receive benefits following the death of a particular member. Such a scheme administrator nomination will not be valid whilst there is a dependant or an individual or charity nominated by the member to receive benefits following their death.
Authorised benefits payable to a nominee
Authorised benefits are payable to an individual in their capacity as a nominee only following the death of a member. The only authorised benefits payable to an individual in their capacity as a nominee are:
Meaning of ‘successor’
Paragraph 27F Schedule 28 Finance Act 2004
Only an individual can be a successor. To be a successor that individual must have been nominated by a dependant, nominee or another successor of the member to receive benefits under the arrangement following their death.
An individual can also be a successor if they have been nominated by the scheme administrator to receive benefits following the death of a particular dependant, nominee or successor (the beneficiary). However, the scheme administrator nomination will be valid only if after the beneficiary’s death there is no individual or charity nominated by that beneficiary.
Where an individual who is a successor to a member is also a dependant of the member, in their capacity as a successor they are not treated as a dependant.
Authorised benefits payable to a successor
Authorised benefits are payable to an individual in their capacity as a successor following the death of a dependant, nominee or another successor. The only authorised benefits payable to an individual in their capacity as a successor are: