If a RAC holder dies today and there are no nominated beneficiaries, the proceeds must be paid to the:

• A. surviving husband or civil partner
• B. estate
• C. nominated beneficiaries
• D. dependants in equal shares

Answer: (B)

When a RAC pays out a death benefit and there are no beneficiary nominations, the funds default to the deceased person’s estate. The plan administrator cannot assign the money to a surviving spouse, dependants, or any nominated beneficiary (since none are named), so the lump sum becomes part of the estate and is distributed by the executor under the will or, if there’s no will, by intestacy rules. If a nomination had been made, those named individuals would receive the proceeds instead of the estate.