Practical solution to a vague Form of Nomination

The client (a company) offered a Group Life Assurance Scheme (the Scheme) to its employees, but when one of their senior employees passed away leaving an unclear Form of Nomination they turned to Stuart from our Trusts department for a practical solution.

The employee wanted the Scheme to benefit their children so Stuart had to understand the circumstances of the family as well as the rules of the Scheme and the extent of the client’s powers to pay death benefits. A flexible form of Trust was established to administer the death benefits until the children reached their twenties whilst sticking to the rules of the Scheme and not surpassing the client’s powers. The Trust department dealt with the administration, investment, accounting and tax compliance work as well as deploying the Trust money to the children when the time came.

Thomson Snell & Passmore were able to work with the client to find a practical solution, give effect to the deceased’s wishes and find the most appropriate way to ensure the children received what their parent wanted.