Fathers Pension Savings Policy

whambam

Hello,

I got a pension savings pack from my father now passed away for a large sum. The policy seems legit with a policy number, its a defined contribution policy and it has payable before death of pension age.

I thought the lawyer dealt with all his affairs turns out he didn't.

So, what does the law say on pension savings for someone who has deceased do the next next of kin, children inherit it just like property rules of intestacy?

Thanks.

HappyHarry

It depends on what type of pension, and whether or not your father left any expression of wishes, stating where he would like the pension funds to go to. If so, they will be considered, as might his will if he left one.

The lawyer probably dealt with your father's estate. As pensions don't usually form part of the estate, it may have been deliberately left alone.

Your next step is to contact the pension provider, let them know your father has passed away, and follow their guidance about what happens next.

Silvertabby

whambam wrote: »

Hello,

I got a pension savings pack from my father now passed away for a large sum. The policy seems legit with a policy number, however I thought the lawyer dealt with all his affairs turns out he didn;t.

So, what does the law say on pension savings for someone who has deceased do the children inherit it just like property rules of intestacy?

Thanks.

My sympathies.

Does the pension company know that your father has died? Did he complete an 'expression of wish' form (ie, he told the pension company who to pay any benefits due to in the event of his death) ?


Crossed with HappyHarry's post !

whambam

No they don't. I don't think he did. He never talked about having a pension policy. I got this letter 5 years after his death.

Silvertabby

whambam wrote: »

No they don't. I don't think he did. He never talked about having a pension policy. I got this letter 5 years after his death.

Then you need to speak to them. It depends on the terms of the pension plan - not all carry death benefits - but they will advise you of the (their) rules and what to do next.


HappyHarry is right - if there are any death benefits due, then they don't form part of the estate so that's something you won't need to worry about.

dunstonh

Most pensions do not fall under the estate and not subject to the Will or the remit of an executor.

There are potential issues regarding the tax status. i.e the length of time since death and his age. And depending on those, the method the money is taken.

atush

If it was a DC pension as you say, it would pass to whoever he nominated to receive it on his death.

If he didnt nominate someone it would first go to his spouse- did he have one? If no spouse it would go to his children.

So call them, inform them of his death and go from there.

Marcon

atush wrote: »

If it was a DC pension as you say, it would pass to whoever he nominated to receive it on his death.

If he didnt nominate someone it would first go to his spouse- did he have one? If no spouse it would go to his children.

Although spouse and children are obvious recipients, it isn't the case that they are automatically first in line. If it is a personal pension and your father has not completed any forms to indicate the preferred recipients of any sums payable on his death, the pension provider decides who receives these.

Something about the wording of your question makes me wonder if the type of pension involved is a 'Retirement Annuity Contract'. Does that wording appear anywhere on the documents?

If so, it could be that the estate has an automatic legal right to at least part of any benefit, which could be a bit tricky if the estate has already been wound up.

You do need to find out exactly what type of policy it is and what benefits are payable. It is highly likely that any payment will be taxed because the money was not transferred into the beneficiary/ies name/s within two years of your father's death.

LHW99

Presumably since the OP's father passed away five years ago, any DC pension money would not fall under the current pension freedom rules for inheritance of the pot itself to be used as pension / income?
Also, had the father passed the NRA of the pension without being paid anything? If so, would those back payments be due if this is a DB plan?

dunstonh

Presumably since the OP's father passed away five years ago, any DC pension money would not fall under the current pension freedom rules for inheritance of the pot itself to be used as pension / income?

It also ceases to be tax free if it is not paid within 2 years.

atush

Although spouse and children are obvious recipients, it isn't the case that they are automatically first in line.

Do prey tell who would they perceive would be above a spouse and dependents if no expression of wishes is filed? I cannot conceive they would choose someone else entirely.