To prepare for writing a Will it is usual to estimate the value of all the assets which form part of the persons estate. this is done for various purposes including that of considering whether or not any Inheritance Tax may be payable on the total.
Many employed people usually think that their home and savings is the total extent of their estate
However one asset which is often overlooked is the possible proceeds from a ‘Death in Service’ life assurance which is usually included with most pension schemes. This normally provides for a lump sum payable to the estate of the employee if death occurs before retirement age is reached. It is often calculated as a multiple of annual salary. Just imagine how 2/3 times annual salary in a lump sum would increase the value of your estate!
There are ways to ensure that such sum can be redirected to beneficiaries and not form part of your estate and it is most important to discuss the matter with your employer and pension provider. After all a hidden asset does not want to incur a hidden liability as well!