Can I please check my thinking. Happy to be corrected
husband sets up life assurance under MWPA sole beneficiary Wife “or successor in title”
Wife dies
After her death Husband signs nomination in favour of their children for up to £5000
Husband died , value of assurance £12 000
on face of it full value of assurance outside Husbands estate as in trust
My thoughts however are as Wife or successor in title ( I take that to be her exors in her Will and therefore beneficiaries under her Will) are beneficiary of trust then the entire £12000 belongs to her estate and passes under her Will , of which the Husband is a beneficiary
Nomination irrelevant to ultimate entitlement of any proceeds
Therefore Husband’s entitlement in late Wife estate is now taxable in his hands
If beneficiaries under the policy are named they acquire an immediate vested interest.in the policy. On death of a beneficiary who dies before the assured their interest passes to their PRs.
Should the beneficiaries not be named they take only a contingent interest in the policy proceeds. The beneficiaries only take if they are alive when the policy proceeds become payable.
I agree with you that as beneficiary named and she predeceases then entitlement passes to her PRs
I think assurance company ( which over years has been taken over a few times) has not appreciated was in trust to wife under MEPA and dealt with nominations to others regardless