Investment Bond Ownership

Hi all,

We have a client who has an investment bond. He is the only policy holder.

There are two lives assured on the plan, the policy owner and his (now ex) husband.

Obviously we are unable to remove the ex husband as a life assured.

The policy owner is worried that, if he dies, his ex husband would get control of the bond and the proceeds as he will be the only remaining life assured.

I do not think this is the case as he is not a policy owner, just a life assured. If the policy owner dies, the bond would continue but the ownership would pass to this estate. The ex husband is a life assured only and has no rights in terms of the bond assets. The divorce is all dealt with and the bond was not part of the settlement. My adviser is questioning my thinking.

Can someone confirm if my understanding is correct? Thanks so much.


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