Claiming deceased aunt's pension

dunstonh

Oxtonite_62 wrote: »

My partner has 3 small personal pensions with CIS (recently taken over by Royal London). He contacted them to take 2 as a lump sum this year and the third he has postponed until April 2016.

He then asked about nominating me as his beneficiary and was told he couldn't as we weren't married and I'm not financially dependent on him. However, they did say if we had a joint bank account then he could nominate me.

He contacted Pensionwise and they believe he has been given the wrong information by CIS.

On the advice of Pensionwise, he has emailed CIS and asked for this information in writing.

He is awaiting their reply!!

Sounds like a mix up on information. Especially if pensionwise are involved (as they deal with the decumulation stage of pensions and if they are involved then its likely annuities are in play)

Annuities can only have spouse or financially linked dependent as the beneficiary. A joint bank account is one of the measures.

Pensions can have anyone nominated as a beneficiary. That means pensions that have not been converted to an annuity for income payment (as they are no longer pensions then).

CKhalvashi

dunstonh wrote: »

Pensions can have anyone nominated as a beneficiary. That means pensions that have not been converted to an annuity for income payment (as they are no longer pensions then).

Mine have my daughters as named beneficiaries, largely because we have a decent enough savings pot/a company if anything happens to me, and I want to make sure they're looked after.

No problem with it at all.

neilvw

dunstonh wrote: »

Annuities can only have spouse or financially linked dependent as the beneficiary. A joint bank account is one of the measures.

This isn't the case since April 2015. Anyone can now be the nominated beneficiary of an annuity.

Similar changes are also being made in respect of annuities so that pension death benefits from money purchase arrangements in the form of an annuity can be paid to anyone, not just a dependant, and that payments from the annuity can be made tax free where the member died before age 75.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/385065/TIIN_8130_2140.pdf

more info here: https://www.jameshay.co.uk/media/1509/techtalk-death-benefits-annuities.pdf

and here:

For annuities purchased after 6th April 2015 the options are:
...
A joint life annuity, which allows the members' annuity, or part thereof, to continue to a joint annuitant (those who could become a joint annuitant was previously limited to dependants, but this is no longer the case)

http://www.pruadviser.co.uk/content/knowledge/technical-centre/death_benefits/#Benefits

Of course, not every annuity provider will necessarily allow this, and it's only for annuities purchased from 6 April 2015.