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Deceased mothers widows pension

Hi all,


A friend pointed me in this direction as they had seen something on the TV recently about unclaimed pensions.


Anyway, on to the background and my question.


My father passed away about 18 months ago. He had been retired for just under 5 years. I helped my mother notify my fathers personal pension company and they told her she was entitled to a widows pension (only £40 a month, but better than nothing). My mother passed away early December. I notified the personal pension company and they have updated their systems and I assumed that was it and the estate would not be entitled to anything.


A friend suggested that the estate may be entitled to some pay-out. I think this was based on a comment I made that my mother had received a letter from the pension company in December last year saying that she could cash in the pension and receive a one off payment of about £6000. At the time I told her she could do it if there was something that she specifically wanted the cash for or she could stick with the monthly payment as it would effectively pay her electricity bill. She decided not to cash it in but obviously with hind-sight it would have been a better idea to cash it in.


I was working on the principle that 'that's it' as far as the pension goes. Is that what you guys think too? Is it worth speaking to the pension company?


Thanks

Comments

  • dunstonh
    dunstonh Posts: 118,599 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    they have updated their systems and I assumed that was it and the estate would not be entitled to anything.

    That is normal with defined benefit schemes. With annuities from insurance companies, there is often a guarantee period and if death occurs in the guarantee period. If it is in income drawdown, then the fund remaining is paid out minus a tax charge.
    A friend suggested that the estate may be entitled to some pay-out. I think this was based on a comment I made that my mother had received a letter from the pension company in December last year saying that she could cash in the pension and receive a one off payment of about £6000. At the time I told her she could do it if there was something that she specifically wanted the cash for or she could stick with the monthly payment as it would effectively pay her electricity bill. She decided not to cash it in but obviously with hind-sight it would have been a better idea to cash it in.

    That tends to happen if a scheme is attempting to discharge some of its liabilities. It doesnt mean there is a pot of money.
    Is it worth speaking to the pension company?

    What type of pension is it?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • I'm not sure.

    I have found documentation that refers to it as a GMP (Guaranteed Minimum Pension). There is also a notes page that explains how the final pensionable salary is cacluated which is based on the annual salary at retirement. It looks like its a final salary pension.
  • dunstonh
    dunstonh Posts: 118,599 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    campbela wrote: »
    I'm not sure.

    I have found documentation that refers to it as a GMP (Guaranteed Minimum Pension). There is also a notes page that explains how the final pensionable salary is cacluated which is based on the annual salary at retirement. It looks like its a final salary pension.

    A final salary scheme (defined benefit) would normally cease on the death of spouse (some caveats, such as young children).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Since this seems to be a final salary pension with GMP and not really the "personal pension" that you described it as in your initial post, the things that happen seem to be entirely correct.

    Had it really been a personal pension, that would not necessarily be true, because it would probably have been in your mother's best interest to do something other than just taking an income offered by the pension company.
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