Death befor taking pension & ex wife dependant

masonj3

Hi

My dad died unexpectedly and suddenly a few months ago before taking his private pension . He was age 70 when he died.

My dad had completed a beneficiary nomination for with my moms details on it. The pension provider say that my dad's ex wife is also a dependant as she was receiving £4 a week spousal maintenance. They have asked for her contact details and copy of the court order from their divorce.

I don't think there is anything we can do even though her benefitting would be totally against my dad's wishes - does anyone have any idea how much percentage wise she may be given from my dad's pension . Thank you xx

BACKGROUND
Married in 1969 for 2 years, ex wife left and filed for divorce she was awarded £4 per week spousal maintenance.
My dad remarried years later and then set up pension plans etc.
His will does not name his ex wife they have had no contact since their divorce.

PeacefulWaters

What type of pension is it? Pot of cash or guarantee of income?

I'd expect any payment to the ex wife to be nil. But trustees have discretion.

masonj3

Hi.thank you for your reply, the company have asked for his ex wife's contact details so I imagine the trustees feel she should get something.

It was a private executive personal plan the pension plan was set up many many years after his divorce he never took any payment from it so presume it's a money pot xx

xylophone

It was a private executive personal plan

This would have been a money purchase plan - as your father died before drawing the benefits, and before age 75, as I understand it, his beneficiary (ies) should inherit the pension tax free.

If there is discretion as to how the benefit is to be apportioned, it is possible that given the circumstances, a very low or even no award would be paid to the ex-wife?

Silvertabby

Did your dad's ex-wife contact the trustees with her claim? Even though they had no contact, she probably found out that he had died when her £4 per week stopped.

masonj3

No as far as I am aware his ex wife hasn't made contact with trustees, she wouldn't of known about this pension x

Silvertabby

No as far as I am aware his ex wife hasn't made contact with trustees, she wouldn't of known about this pension x

Then how did the trustees know about her?

Mojisola

masonj3 wrote: »

Married in 1969 for 2 years, ex wife left and filed for divorce she was awarded £4 per week spousal maintenance.

A lifetime award after two years of marriage! Thank goodness things have changed since then.

masonj3

All family members including previous marriages etc had to be declared on claim form that my mom was sent to fill in.

macca1974

Trustees do need to look at all financial dependents, so now that they know about the ex wife then they need to consider them. I would have thought that if you can demonstrate that there has been no contact since 1969 and that he has been married to your mother for a considerable period then they will make the correct decision (i.e. ignore the ex-wife to an extent).

I would have thought (and this is just my opinion!), that the worst case scenario would be that the trustees decided to provide enough so that the ex-wife could continue to receive £4 per week. So assuming she is 2 years younger (68) and in decent health, the money advice service website suggests that a level annuity would provide a rate of 5.65%. So to provide this, would cost about £3,700. It would be very odd for the trustees to decide to pay any more than was due from your father if he had lived I would have thought.

masonj3

Thank you xx I was thinking similar to you macca1974 but I just wondered if anyone had experience of this or been through anything similar.