What is a nominated asset or policy?

A nominated asset, for inheritance tax purposes, is a very specific sort of asset. It is something which the deceased nominated to pass to a particular person.

Gifts in a will and jointly-owned property are not nominated assets in this sense. Neither are pension policies and lump sums written in trust for someone; these are dealt with separately.

Nominated assets are rare. The only assets which can be nominated are deposits in friendly societies and industrial and provident societies, and only then if the deposit is £5,000 or less. If the deceased held National Savings investments dated 28 February 1981 or earlier, these too could be nominated.

How to find out if an asset is nominated

If the asset is nominated, the deceased will have completed a form of nomination indicating how it should pass after his or her death.

If in doubt, check with the provider.