Pension/Annuity Death Benefit

stressedoutmumof1

I've posted this in the Death, Funerals and Probate section, but I thought there might be some more knowledgeable people in this section?

I am in the process of sorting out all my father's paperwork (he died last month). He had a private pension annuity, does anyone know if there would be any kind of death benefit for that?

HMRC's website states that there usually is, but looking back at the paperwork I can only find the total amount of the annuity and not really much on any pay out of the difference.

I contacted the pension provider, and they have said that the policy was set up on a joint life basis, so no further payments are due as my mother is also dead.

However, that makes no sense at all as my mother died in 1992, and the annuity was taken out in 2004, and my father never remarried?


I hasten to add, pensions/annuities etc are not my forte so to speak!

Thanks in advance!

atush

Well annuities (if they don't have a guarantee and there is no spouse) die with the pensioner.

but you do have the outstanding question of why they let him buy a spousal joint life pension when he was single at the time?

Ask them, probably he should have been getting hunderds if not thousands more per year depending on his pot.

Did take (paid for) advice on his annuity?

stressedoutmumof1

Looking at the paperwork, there is no mention of a spouse or it being a joint life policy.

The pension scheme shows myself and my brother as being nominated for any payment in the event of his death. The pension scheme then bought the annuity, which was an impaired life annuity. This was then taken over by 4 companies - Scottish Equitable, GE Life, Windsor Life, and now Reassure Ltd.

But if, as you say, annuities die with the pensioner then I guess that's that!

I just thought it odd that they would say it was a joint policy when I can find nothing that backs that up?

jem16

stressedoutmumof1 wrote: »

I just thought it odd that they would say it was a joint policy when I can find nothing that backs that up?

Somebody who doesn't know what they are talking about presumably.

If the paperwork confirms that it was single life, then that is what will matter.

stressedoutmumof1

I can't find anything to back that up either! Apart from the fact it is just in his name, and no mention of a spouse. It just states it's an impaired life policy.

jem16

stressedoutmumof1 wrote: »

I can't find anything to back that up either! Apart from the fact it is just in his name, and no mention of a spouse. It just states it's an impaired life policy.

The only thing I can suggest is that you write to the pension company asking for clarification.

dunstonh

does anyone know if there would be any kind of death benefit for that?

Potentially. The death options are chosen by the annuitant at point of sale. There are variations from none, to continuing income for a period or for spouse to lump sum.

HMRC's website states that there usually is,

I believe that is wrong. I wouldnt want to be as bold as what they are saying as I believe the most common option is single life with 5 year guarantee.

I contacted the pension provider, and they have said that the policy was set up on a joint life basis, so no further payments are due as my mother is also dead.

Which seems logical.

However, that makes no sense at all as my mother died in 1992, and the annuity was taken out in 2004, and my father never remarried?

If the pension contained protected rights then there would be automatic spouse provision whether there was a spouse or not.

This was then taken over by 4 companies - Scottish Equitable, GE Life, Windsor Life, and now Reassure Ltd.

Strange as Scot Eq has no connection with the other three. GE Life, Windsor Life and Reassure are all the same thing. Maybe the original pension was Scot Eq and open market option was used with the other.

stressedoutmumof1

Thanks for your responses. I will write them a letter tomorrow to get further clarification.