Pension pay out after death.

adam_999

Hi

Looking for advice on pension pay outs.

I'm sorry in advance if this question has already been asked.

My Mother past away a week ago and has a local government pension .

There is no will and no estate i am aware that there are a few debts.

Would any debt have to be paid from my late mother pension pay out or this protected in any way.

Thanks for you help.

jem16

adam_999 wrote: »

Would any debt have to be paid from my late mother pension pay out or this protected in any way.

Any pension payout falls outwith the estate.

adam_999

Hi

So the pension falls Outside the estate? What is the reason for this?

jem16

adam_999 wrote: »

Hi

So the pension falls Outside the estate? What is the reason for this?

The pension is written in Trust and the Trustees will normally pay out directly to the beneficiary.

Is there going to be any payout? This would normally be to a spouse or dependent children and would be in the form of a continuing pension plus a death grant if your mother died within 5 years of first receiving her pension.

http://www.lgps.org.uk/lge/core/page.do?pageId=101550#deathgrant

jamesd

Here's roughly how it'll work:

1. Top priority is funeral costs. Any money she has is used to pay for these first.
2. Second priority is costs of administering the estate, stamps and such.
3. Priority debts come next, probably aren't going to be any of them. Then other debts. Since you anticipate no remaining money in the estate you can let the creditors know that they probably won't get anything and you'll confirm that when the estate is fully settled.
4. Anything for those mentioned in a will or otherwise comes after all of that.

But as jem16 mentioned the pension money won't be part of the estate so it's not included in any of the things above.

For any debts, they aren't inherited, except if a debt was a joint one with two or more people signing up for it. In the joint debt cases the remaining debtor has to repay as usual.