Important changes to terms and conditions for the WorkSave Buy Out Plan
This is not a consumer advertisement. It is intended for professional financial advisers and should not be relied upon by private customers or any other persons.
We are making some changes to the terms and conditions of the WorkSave Buy Out Plan which will apply from 22 September 2017.
What are the changes?
Under the current policy terms we are bound to follow a member’s wish if they nominate someone as a beneficiary. This means that when they die their policy has to be considered as part of their estate and will be included in any inheritance tax calculations.
The changes we are making will allow us to use discretion about where we pay policy benefits as allowed by tax legislation. Where benefits are not used to provide a pension annuity we will hold that part as a lump sum on discretionary trust and we will pay it at our discretion to one or more eligible beneficiaries in such proportions as we decide. This means that the policy benefits can be considered outside of a member’s estate when any inheritance tax liability is calculated.
If the member has already established a personal trust, these changes will not apply to them.
We’ve also introduced some wording that gives us the right to review or change the fund or funds that were chosen by the Trustees if they are no longer considered suitable for a plan of this type.
You can find details of the new wording on pages 7, 18 and 24 of the new View - Policy booklet.
What does this mean for new and existing members?
All new members who are transferred into WorkSave Buy Out Plans from 22 September 2017 will receive the new View - Policy booklet and the new terms will automatically apply.
We are currently preparing a plan to roll this change out to existing members and will contact you shortly with our proposed approach.
If you have any questions about these changes please speak to your usual Legal & General contact.