IHT on insurance bond paid to nominee

[TW1234]

If the deceased holder of an (onshore UK 1990's) insurance bond has nominated another for payment of proceeds on death, (NB Not an assignment) do the proceeds form part of the deceased estate total for IHT calculation?
If no, is there any time period for the nomination before death applicable?


It seems a simple question but I cannot find a definitive answer. Thanks.

[maths]

Is it not the case that the holder of the bond (and presumably the life insured) has created a bare trust under which he (as bare trustee) holds the bond for the benefit of the beneficiary so named?

If so the proceeds on death are those of the beneficiary not the deceased.

[TW1234]

Would not think so, as a nomination can be changed and is not binding.

[maths]

If the life policy holder executed no assignment and no declaration of trust nor settled the policy in trust then I don't understand how a nomination can take the proceeds on death out of the holder of the policy's estate at that time.

Nominations under pension schemes are of course quite common and on death any proceeds fall outside the member's estate as any decision as to whether or not the nominated person receives any monies are down to the trustees of the pension scheme i.e. nomination is not binding upon the trustees. However, I am not sure how this can apply to a single premium bond scenario?

Maybe others can help.

[TW1234]

For clarity--it is a distribution bond with dividends reinvested.