When a person dies before pension is claimed

somethingcorporate

It appears he has not nominated any beneficiaries. He should do, otherwise as per the above posts, the pension company will make the decision.

richard_3095

Before Prudential will send out an Expression of Wishes form, they need to have a letter of authorization from my brother. Very strict rules.

richard_3095

My brother needs to send a letter to Prudential giving authority for his son to deal with Prudential in the matter of all policies that my brother has.

Is this sort of letter okay?:

"I hereby authorize my eldest son, R R, living at 61 Any Street, Any Town, Any County, XC8 9IK, to deal with Prudential in all matters and with respect to all policies etc. I have with them, in life and after my death."

jamesd

That will not allow the son to complete an expression of wishes form, so your brother should still request one. And should include an expression of wishes in the letter as well: "With no expression of wishes form from you, this is my expression of wishes: on my death I wish the money to be paid to x: a%, y: b%, z: c%. I will complete your own form should I receive it and still be alive and able to get it done.".

richard_3095

Should there be witnesses to the signing by my brother?

A nurse perhaps at the hospice?

puk999

jamesd wrote: »

Even though it is available in this situation, it might be better to keep it in the pension until after death, when all of it will be paid to the named beneficiaries outside his estate, which avoids any chance of inheritance tax...

I didn't know a pension pot was considered to be outside of the estate and shielded from IHT. Thanks for enlightening me :beer:

lisyloo

Should there be witnesses to the signing by my brother?

The form will say what is required and who can witness it.

Often those kind of things need a witness but it's pretty easy because all they are delcaring is that your brother has signed - so it could easily be a nurse.

lisyloo

I didn't know a pension pot was considered to be outside of the estate and shielded from IHT

It's called being "in trust" and often it happens automatically.
It means the trustees decide who gets the money.
Usually this is done by the form or the will.
Occassionally it gets complicated - if for example some like an ex-wife thinks they are entitled by are not in the will.
The easiest thing by far is to fill out the form so the trustees are clear on his wishes.

In the majority of cases the instructions are followed.
They only wouldn't be followed if there was someone dependent or entitled who had been excluded.
If a divorce has been done properly it should have considered future pension payments.

jamesd

puk999 wrote: »

I didn't know a pension pot was considered to be outside of the estate and shielded from IHT. Thanks for enlightening me :beer:

It's also shielded from debts, just like insurance payouts to a named beneficiary. So someone can have a nice pension pot pay out while also having large unpaid debts in their estate.

For the pension case there is a 55% tax charge if income of a pension lump sum has been taken, unless the money is paid into the pension pot of a spouse. No tax charge if neither lump sum nor income has been taken.

atush

Can your brother speak If so, call the pension company and give him the phone to do the security check, then he can hand it back over to you? I do this sometimes with the OH.


Otherwise, draft the letter (as above, good idea about the expression of wish basics), he signs it you send it in.


Ask in the letter that a blank form be faxed or emailed to you (ie your brother) then print it out so he can sign it. Be prepared for testamentary capacity questions.