Does a refund of contributions class as an estate?

AP1978

Hi not sure if anyone can help, my father in law recently passed away. He was on benefits, living in a housing association property, had no car or other assets and left no provision for his funeral. On looking into his affairs we have found documents relating to two pensions; the first a small one of £500, the other a larger one of £10,000. On ringing the company responsible for the larger one, as he died before 60 (he was 58), they do not pay it as a pension, but as a refund of contributions. The question is would this class as his estate? And after funeral costs are met could we be made to pay the debts he had (some £6500)?

We assume the smaller one would definitely be classed as his estate?

Drp8713

Did he fill out a nomination form? If so it will likely go to that person, if not it will likely go to the estate

AP1978

Yes he did, my wife and her sister were both named on the form. The pension company have said they would pay it to them direct but do they put it as his estate once they have it or is it there's to do with as they wish? My wife has written a few letters to notify companies that her father has passed away and has said there is no estate, but obviously doesn't want to deceive them and be held responsible for settling the bills at a later date

Drp8713

I don't think it will in that case.

Have a read of this; http://www.hmrc.gov.uk/pensioners/passing-tax.htm

Death benefits from a workplace paragraph

Linton

I believe the refund of an untaken pension is made outside the estate. Pensions arent, strictly speaking, owned by the pensioner and so dont form part of the estate.