Is a pension part of an estate?

Mandy55

Hello - My husband died recently and unfortunately we didn't make a will. It all seems very complicated. He died in service and i have received a cheque to the value equivalent of two annual salaries. Could anyone help me please - Should this cheque be part of his estate? I understand that because we didn't have a will then the first £250,000 comes to me and the remaining monies divided between our children. So do i still receive the £250,000 aswell as the cheque from his pension? Or is cheque included in his estate?

Thank you so much for any advice. I'm a bit lost in all of this

noh

A death in service payment would not normally be part of the estate.
I assume the cheque you received is made out to you as the payee?

Mandy55

Yes it was. The money is in my account. I wondered if it was something to do with not having a will? Thanks for your reply

getmore4less

As above in most cases the pension benifits fall outside the estate.

Any joint assets also belong to you and don't form part of the estate for distribution. Allthough there will be a value for the IHT calculations but they are exempt as spouse.

RAS

Sorry for the situation. Did your husband nominate you as the recipient of the death in service grant? If so, it is outside the estate.

enjoyyourshoes

Hi

go onto the Govt website , search intestate & there is helpful guide.

Don't use Solicitor to deal with the estate as you or your children can do it.

Get as many copies of the Death certificate as bank accounts/societies, shares, life policies etc. when you apply for the Original Death cert (they are 1/2 price than when you request them later)
You will need certificated copy for each request when competing the probate.

if he had equities (stock shares etc) get copy of Financial times dated on his death, again to prove estate worth for probate.

g6jns_2

I am sorry to hear of your loss. The money does not form part of your late husban's estate. In the absence of a will you need to apply for letters of administration. Lots of information on the Sticky pages.

Mojisola

Mandy55 wrote: »

I understand that because we didn't have a will then the first £250,000 comes to me and the remaining monies divided between our children.

So do i still receive the £250,000 aswell as the cheque from his pension? Or is cheque included in his estate?

This first £250,000 comes to you plus half of the rest of his estate. His blood-related or adopted children get the other half of the 'rest'.

Other things like the pension payment and insurances may be paid directly to you and won't form part of his estate as far as sharing out is concerned.

Anything jointly owned automatically becomes yours and won't be part of his estate.

frugalmacdugal

Hi,

sorry for your loss.

It may be that your husband had filled a 'nomination form' in your favour, so outwith the estate.

From a Money Mail article:

Assuming you die before you retire, in most cases the entire value of your pension fund can be paid to your beneficiaries free of tax. This is a valuable death benefit that is often overlooked when planning for family financial protection.
Because the majority of pension plans are written in trust as default, the value of the fund should be kept outside of your estate for inheritance tax purposes.
This means that it can be paid free of tax and quite promptly. To speed things up and ensure tax efficiency, you should make sure that you have completed a 'nomination form' for your pension provider, explaining precisely who you want to receive benefits and what proportion they should receive.

Mandy55

Thank you for all your replies. This is where i think it may be a bit complicated. The actual nominee was his previous/late wife who he was with when he took out his pension. After she die, we met, but didn't change the nominee on his pension. (did't cross our minds) Nor did changing the deeds on the house or making a will. Regretting all that now. Anyway, the pension was challenged but after producing his late wife's death certificate and our marriage certificate the lump sum was then given to me. So.. doe stat make a difference? Do you still think i would be entitled to a further £250,000 on top of his pension lump sum?

Thank you in advance

Mojisola

Mandy55 wrote: »

Anyway, the pension was challenged but after producing his late wife's death certificate and our marriage certificate the lump sum was then given to me. So.. doe stat make a difference? Do you still think i would be entitled to a further £250,000 on top of his pension lump sum?

Yes, the pension payment is not part of his estate.

As his wife, you will inherit the first £250k and half of the value of the rest of his estate.

Any children who are yours but not his will not share in the inheritance.