Stressed son needing advice

stayathomedad_2

My dad decided to retire when he turned 60 at the end of Oct 2014, technically he was self employed so just stopped taking new work rather than actually ending an employment contract. Pretty unexpectedly he was then diagnosed with stage 4 cancer in Dec 2014 and now he is deteriorating rapidly.

When he decided to retire he assumed he would get to April 2015 and be able to access his defined contribution pension pot but now it looks like he may not make it that far.

I am just looking for guidance on what would happen to the pension pot if he dies before April and cannot withdraw money from it as planned in April. Does that pension pot form part of his estate and pass to my mum?

We haven't been paying much attention to the money side of things while coming to terms with what is happening but now things are moving so quickly my mum is looking for reassurance.

Thanks in advance

McKneff

I don't know about the private pension but as for anything else, please contact Macmillan Nurses they have great knowledge about the benefit system.


Your father should be fastracked for PIP at least


Im so sorry your dad is so ill.

enthusiasticsaver

Is your dad drawing on this pension fund now? I would check the terms and conditions on the pension fund if it is a defined contribution one.

stayathomedad_2

enthusiasticsaver wrote: »

Is your dad drawing on this pension fund now? I would check the terms and conditions on the pension fund if it is a defined contribution one.

He is not drawing yet, he was planning to take some or all of it (it's not huge) in April when the rules change. Is it advisable to phone the pension fund and tell them he could die soon or is that a bad idea?

jem16

stayathomedad wrote: »

I am just looking for guidance on what would happen to the pension pot if he dies before April and cannot withdraw money from it as planned in April. Does that pension pot form part of his estate and pass to my mum?

Pensions are usually outwith the estate and would pass to the nominated beneficiary which I would assume is your Mum.

Has your Dad taken any benefits as yet from his pension? This makes a difference to what happens.

Has your Dad been given a terminal decision of less than 12 months to live? If so he could access it all now.

http://www.pensionsandannuities.co.uk/Terminal_Illness_and_Pensions.htm

PeacefulWaters

If he's terminally ill (and is yet to draw from the pension) he should be able to access the whole fund tax free assuming the prognosis is less than 12 months.

The pension provider will need medical evidence.

Contact them.

CapricornLass

I'm so sorry to hear about your dad's illness.

With regard to the private pension, your father should have some documentation a bit like an insurance policy document about it, and it should state in there what will happen to the pension pot when he dies. What is paid out will depend on whether he reaches his formal retirement date or not and also whether it provides for a pension to be paid to your mother.

If you have a power of attorney invoked for your father's financial affairs, the pension company would also be able to advise you. I don't think they will be very forthcoming without one, though.