When you nominate a beneficiary, you're designating someone who will receive both your savings and any additional insurance coverage in the unfortunate event of your passing.
Who Can Be Your Nominated Beneficiary:
Your nominated beneficiary can be:
- A British citizen
- A registered charity
- Any other UK organization, excluding Sovereign Credit Union. If your desired nomination falls outside these categories, we recommend designating the executor of your will as the sole beneficiary, along with providing them clear instructions.
In cases where your chosen beneficiary is associated with Sovereign Credit Union (officer or employee), they must be related to you as a spouse, civil partner, parent, child, sibling, niece, or nephew.
Updating Your Beneficiary:
To make changes to your beneficiary nomination, you can visit any of our offices in person or communicate in writing, outlining the modifications. Your signature and date are required for these changes to take effect.
Limits on Beneficiary Transfers:
The maximum transferable amount to your beneficiary or beneficiaries by Sovereign Credit Union is £5000. This sum encompasses both shares and insurance.
For instance:
- With a single named beneficiary, a maximum of £5000 can be paid.
- If there are two beneficiaries, up to £2,500 can be paid to each individual.
In cases where your estate surpasses £5000, the excess will be disbursed to your estate's administrator, contingent upon presentation of appropriate documentation (e.g., Letter of Administration or Grant of Probate).
For more detailed information on this topic, visit https://www.gov.uk/wills-probate-inheritance.
Marriage or Civil Partnership:
Entering a marriage or civil partnership will revoke any prior beneficiary nomination you've made.
It's essential to note that if you marry or form a civil partnership with someone other than your nominated beneficiary without notifying us, the Credit Union won't be liable if disbursements are made to your nominated beneficiary instead of your spouse/partner.
To avoid any confusion, promptly inform us after marriage or civil partnership, ensuring that your nominated beneficiary details accurately reflect your intentions.
Upon being informed of your marriage or civil partnership (with relevant evidence provided), we will automatically update your beneficiary to solely your spouse/partner, nullifying previous nominations.
Effect of Having a Will:
A will cannot alter or revoke your beneficiary nomination. Thus, we will honor transfers in accordance with your nomination, regardless of your will.
No Nomination or Deceased Beneficiary:
The approach here depends on the total value of your shares and insurance:
- If you pass away without a valid living nominated beneficiary and the combined value of shares and insurance is £5000 or less, we may distribute the funds to those legally entitled, based on satisfactory evidence.
- In the event of your passing without a valid living nominated beneficiary and the total account value exceeds £5000, individuals seeking to claim the funds will need to provide a Letter of Administration or Grant of Probate.
The original death certificate holder will receive an account valuation. If you have a will, the executor of the will, their agent, or legal representative should be the recipient.
For comprehensive details on probate and estate administration, refer to https://www.gov.uk/wills-probate-inheritance.