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  • FIRST POST
    • MichelleUK
    • By MichelleUK 19th Mar 17, 9:02 AM
    • 247Posts
    • 161Thanks
    MichelleUK
    Death during final pension drawdown....
    • #1
    • 19th Mar 17, 9:02 AM
    Death during final pension drawdown.... 19th Mar 17 at 9:02 AM
    I read a post on another forum about a very odd tax case and I wondered what the correct procedure for a pension company should be in the following case...

    A pensionholder in drawdown asks that the whole of their remaining fund be paid as income and their account closed. The pension company make the payment, less emergency tax. In the meantime, the pension holder had actually already died (a couple of days before the payment was made). What should the pension company do about the transaction?

    1. Leave it as it is?
    2. Ask for the payment to be returned and add back the tax etc. as if the transaction had never happened?
    3. Something else?

    I know we have some very knowledgable folks on this board and the conundrum has me intrigued!
Page 1
    • xylophone
    • By xylophone 19th Mar 17, 10:54 AM
    • 21,341 Posts
    • 12,258 Thanks
    xylophone
    • #2
    • 19th Mar 17, 10:54 AM
    • #2
    • 19th Mar 17, 10:54 AM
    Are you positing that the payment had actually arrived in the account of the deceased?
    • MichelleUK
    • By MichelleUK 19th Mar 17, 11:09 AM
    • 247 Posts
    • 161 Thanks
    MichelleUK
    • #3
    • 19th Mar 17, 11:09 AM
    • #3
    • 19th Mar 17, 11:09 AM
    Are you positing that the payment had actually arrived in the account of the deceased?
    Originally posted by xylophone
    Yes, the OP stated that the payment was made directly to his late fathers account. The payment was initiated when the father had already died (but pension company was unaware) so it is not a case of dying during the 'clearing' of the payment.
    • xylophone
    • By xylophone 19th Mar 17, 11:23 AM
    • 21,341 Posts
    • 12,258 Thanks
    xylophone
    • #4
    • 19th Mar 17, 11:23 AM
    • #4
    • 19th Mar 17, 11:23 AM
    The payment was initiated when the father had already died
    The father gave an instruction- the pension company set up the payment in its system in accordance with that instruction.

    It is perfectly possible ( cf Hargreaves Lansdown) that that payment would not go out until a certain day of the month.

    The payment was sent on that certain day and arrived in the deceased's account.

    To my mind ( but I'm no expert) the money stays in the account of the deceased until such time as the executor deals with it in the normal way.
    • mgdavid
    • By mgdavid 19th Mar 17, 6:57 PM
    • 5,158 Posts
    • 4,328 Thanks
    mgdavid
    • #5
    • 19th Mar 17, 6:57 PM
    • #5
    • 19th Mar 17, 6:57 PM
    ......

    It is perfectly possible ( cf Hargreaves Lansdown) that that payment would not go out until a certain day of the month.

    The payment was sent on that certain day and arrived in the deceased's account.
    ............
    Originally posted by xylophone
    Yes I think that is common and probably normal. Charles Stanley work to a fixed payment date of the 15th of any month.
    A salary slave no more.....
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