Probate and Estate

Jamesbelfast

My older brother died a few months ago before his 65th birthday and I am his next of kin. I assumed he was flat broke. It now transpires he had a private pension plan which is prepared to pay me a discretionary payment (estmated at £8000). This is entirely at the discretion of the pension tustees and was in no way part of the pension plan or its rules.
Does anyone know if this payment would form part of his estate. As he left debts am I bound to pay these or am I exempt if I accept this money.
Many thanks in anticipation.

Biggles

Talk to the pension trustees. A death gratuity is normally not part of the estate, as it is a payment direct to a survivor of the deceased.

But this could well vary according to the terms of the pension scheme - the trustees would know this kind of thing, it will be something they are asked all the time.

Robert_Sterling_3

This is a bit of back ground information.

The money is entirely at the discretion of the Trustees.
This arrangement has tax benefits.
The trustees will know what the deceased wanted to happen and will act so that it does happen.
Because they have discretion it is not part of his estate.

.......................................This is not legal advice it is my opinion.

mountainofdebt

My FIL died before he could take his pension a few years back and when the solicitors wrote to the pension trustees, they wrote back and said there was nothing to pay into the estate.

You can imagine how OH felt as he knew his dad had paid into the pension for years but, because of there were solicitors involved, decided to wait until the estate was settled before taking on the trustees

Anyway fast forward six months and I was speaking to an IFA about the trustees refusal to pay out and he very nicely drafted a letter for OH to send to trustees and a fortnight later OH and SIL had the proceeds of their dads pension.

Therefore from this experience I would say no it doesn't form part of the estate so you're not bound to pay off his debts.