Category: Group life · Reviewed by Matt Bartlett, Director · Founder · Last reviewed 2026-06-10
A group life nomination — universally referred to as an expression of wish — is the employee’s written statement of how they would like the trustees of the group life trust to exercise their discretion to distribute the lump sum death benefit. The nomination is not binding on the trustees (because that would cause the trust to lose its discretionary character and bring the proceeds back into the deceased’s estate for IHT) but in practice trustees almost invariably follow the deceased’s wishes.
Category: Group life Also known as: Expression of wish, nomination form Binding effect: Non-binding (deliberately) Related concepts: Group life trust, Master trust group life, Excepted group life policy
The nomination is normally made via a simple form completed by the employee on joining the scheme, with the option to update at any time (and a strong recommendation to review on life events such as marriage, divorce, birth of a child or death of a beneficiary). The nomination identifies beneficiaries and the percentage allocation between them.
The non-binding nature of the nomination is essential to maintaining the trust’s character as a discretionary trust. A binding nomination would result in the lump sum being treated as part of the deceased’s estate for IHT purposes (per the principle in Re Cherry’s Settlement Trusts and modern HMRC guidance). Trustees must consider the nomination but exercise their discretion taking into account all relevant circumstances at the date of death.
The employer or insurer typically provides a standard form. Most modern schemes allow online nomination through a self-service portal. HR teams routinely remind employees to update nominations on life events. Approximately 35% of employees do not complete a nomination (GRiD market data), leaving the trustees to exercise discretion on the basis of investigation into the deceased’s family circumstances.
An employee completes a nomination form naming his spouse (70%) and two children (15% each). Three years later he divorces but does not update the nomination. On his death the trustees consider the form, the divorce, the deceased’s correspondence, and his current circumstances, and exercise their discretion to pay 100% to the children. The decision is documented.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email hello@apexinsurancebrokers.co.uk, or request a quotation.
Get a quote