Pension: what happens when you have no dependents

noideapleasehelp

My sincere apologies if this has been answered before. I'm new to posting on Forums for answers to questions and did a search but don't understand how to filter the searches.

I'm in my mid-fifties and have never understood pensions.

I don't have a will as I have nothing to leave but am just getting my head around having to do this even if I have nothing.

I have very tiny bits of money in several pension schemes.

I have never filled in the nominees form as I have never married, have no children and do not have a partner.

I have a mother, brothers, sister-in-laws and they all have children but they are not technically dependent on me for their day-to-day lives.

Can I fill in my nominee form for these little pension bits to my relatives as opposed to dependents?

If I die - what happens to my pension bits?

Do they go back to the state because I have no dependents or can I leave them to anyone I name who is a relative (dependent or not).

I'd like to leave the amounts (if there are any amounts) to my estate to then be divided up equally amongst my family.

Is this possible - or is it the case that being unmarried, partner and no kids it just goes to the government?

Again, I'm really sorry if this has already been answered before - I'm a bit new to computers and Forums on the Internet.

Thank you very much for any help.

marathonic

You can fill in the form nominating anyone - I've no dependents so have nominated my two brothers and parents for a 25% share each.

Without filling in this form, it should go to your estate and be split according to your Will.

If you have no Will, the assets will be given to those who are entitled to it following the rules of intestacy.

http://www.adviceguide.org.uk/england/relationships_e/relationships_death_and_wills_e/who_can_inherit_if_there_is_no_will___the_rules_of_intestacy.htm#what_are_the_rules_of_intestacy

noideapleasehelp

Thank you so much for clearing that up.

I had thought that any monies accrued in a pension no matter how small - went back to the state if you had no recognised dependents.

Thank you so much for clearing that up and so quickly!

Many thanks - it's been worrying me for months now and thank you for clearing that up.

All the best to you.

marathonic

noideapleasehelp wrote: »

Thank you so much for clearing that up.

I had thought that any monies accrued in a pension no matter how small - went back to the state if you had no recognised dependents.

Thank you so much for clearing that up and so quickly!

Many thanks - it's been worrying me for months now and thank you for clearing that up.

All the best to you.

One thing to add - when/if you eventually buy an annuity, there will be no money passed to your beneficiaries. Instead, this will be used to continue to fund annuities for those who survive you.

noideapleasehelp

Thank you Marathonic for that bit of information.

Think that is why I was getting confused and makes sense now.

Thank you again for such prompt replies.

All the best.

mania112

If you die without leaving a will, the laws of 'who gets what' is known as intestacy.

The 'rank' of who your estate will be left to is shown here:

http://www.martletresearch.co.uk/probate-research-services/information-for-claimants/chart-of-intestate-succession/

zagfles

However some company pensions pay to whoever the trustees decide to pay, and won't necessarily follow the intestacy rules or even your will.

You can make a nomination which the trustees will usually (always?) follow but it's at their discretion officially (I think doing it this way avoids IHT).

Annisele

The trustees won't always follow your nomination.

Imagine you filled in the nomination form 30 years ago and nominated your then partner - and you haven't changed the nomination form since. Now imagine that 29 years ago you met a new partner and had three children with them.

In those circumstances, the trustees may well choose to pay all (or some) of the money to your new family instead of the person you were living with 30 years ago. But if you want to be sure, keep the nomination up to date!

mania112

It would be interesting to see research which notes how often Trustees have gone AGAINST an expression of wish (and why).

System

mania112 wrote: »

It would be interesting to see research which notes how often Trustees have gone AGAINST an expression of wish (and why).

As even wills can be challenged in the courts, is there a similar ability to challenge a letter of wishes? Can a court order the trustees to pay out to a particular beneficiary?

mania112

Clifford_Pope wrote: »

As even wills can be challenged in the courts, is there a similar ability to challenge a letter of wishes? Can a court order the trustees to pay out to a particular beneficiary?

Yes, I would assume so.

I know of an 'intestacy' case of a man who died without a will but had a 20yr long relationship with a woman and they had never married. They had bought a house in his name and besides the house his main asset was his Railways pension (paying £15k pa).

His nearest family member as per the rules of intestacy was his brother. Someone he had not spoken to in 40 years. his common law wife was entitled to nothing and was destined to losing her home.

Clearly this was unfair, the courts deliberated for 4 years(!) and finally gave EVERYTHING owing to his brother, to his partner.

Now, clearly the lesson here is a) get married and b) get a will. But also the Trustees must have been told by the courts what to do with the pension, they must be as flexible as the law might require them to be.

I don't hold much value in 'expression of wish' to be truthful because it would be a brave trustee to do something different than the will, or laws of intestacy, or the courts might dictate.

There is definitely a hierarchy of power in these situations and Trustees must honour the courts rather than the expression of wish, i'd say.