State Pension when someone passes away

piglet22

Good afternoon

Sadly, my father-in-law is terminally ill and I am trying to help my mother-in-law ensure that her finances are in check so that she has one less thing to contend with.

I am currently looking at income and expenditure. Both my mother-in-law and father-in-law receive a state pension. I have looked at the government website to try and figure out what happens to the state pension when someone passes away and well, found it not particularly clear. Am I right in thinking that the widowed party is entitled to some of the pension. If so, is there a calculation that will allow me to forecast what that might be?

Any advice would be much appreciated.
Many thanks

CKhalvashi

Usually it won't carry over.

The DWP would need to be informed, and it would stop, however there may be a small overpayment that will need to be paid back.

Same with any private pensions, unless there's a spouse benefit.

CK

sleepless_saver

Basic state pension and additional state pension are treated differently, see http://www.pensionsadvisoryservice.org.uk/state-pensions/death-benefits for info on both.

piglet22

Thank you. My father-in-law is receiving £589/four weekly so I am presuming that some of this would be additional so I just need to figure how much of it is and then I can use the calculator. I might need to ask to see the paperwork because I have no idea if he is taxed due to his private pension.

I have just noticed that the maximum state pension is £110 per week. My mother-in-law is claiming £266/four weekly so now I am assuming that she is not on a full pension which might mean she is could also receive some of my father-in-law's basic in the eventuality.

atush

She will inherit some of this S2P, and might get more on her main pension, if he had a full entitlement and she had less than a full pension.


In her case that seems to be right, so she should go up to 110/wk plus what she inherits from his state second pension.

kidmugsy

piglet22 wrote: »

Thank you. My father-in-law is receiving £589/four weekly so I am presuming that some of this would be additional

Presumably £589 - 4x£110 = £149 per four weeks. I think your MIL can expect to inherit 50% of that (the detail depends on age: it could be more).

piglet22 wrote: »

I might need to ask to see the paperwork because I have no idea if he is taxed due to his private pension.

You always receive your state pension free of tax: if tax is owed on it that is levied on your occupational or private pension instead.

piglet22 wrote: »

My mother-in-law is claiming £266/four weekly so now I am assuming that she is not on a full pension which might mean she is could also receive some of my father-in-law's basic in the eventuality.

AS I understand it your MIL will get her basic state pension made up to your late FIL's basic level.

CKhalvashi

kidmugsy wrote: »

AS I understand it your MIL will get her basic state pension made up to your late FIL's basic level.

This is my understanding too, as this isn't a case fitting in the 'usually' category mentioned above.

CK

atush

Will she get a survivors pension from his private pension?

xylophone

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS19_State_Pension_fcs.pdf?dtrk=true

Check on a widow's pension from his private scheme.

http://www.hmrc.gov.uk/bereavement/

jamesd

The maximum state pension is not £110 a week. It's over £250.

There are two main parts to the state pension, the basic state pension and the additional state pension that is earnings-related, built up from SERPS and now S2P parts of NI. Most won't get £250 or close to it because that takes near to higher rate income tax earnings for a full working life. Some people also have an older form, Graduated Retirement Pension that increases it.

It seems that he's on about £147.25 a week, which is well within the usual sort of range for both parts of the state pension combined. Since £110.15 is the current basic state pension, that means that he's receiving £127.25 - £110.15 = £37.10 a week's worth of additional and/or graduated pension.

Some inheritance will happen. Can't say how much without knowing the split between the pieces that make it up.

Does he have any private pension pots that income has not yet been taken from? Don't take income from them if so, there are better options!