Unused small pension

HelpPeter

I have a small company pension from a part time job. Is it possible to leave it untouched and then transfer to my grandson?

Linton

From :https://www.pensionsadvisoryservice.org.uk/about-pensions/when-things-change/bereavement-what-to-do/what-happens-when-i-die

Defined contribution schemes

If you die after leaving the scheme but before taking your pension pot, it's likely that the scheme would pay out the value of your pension pot at your date of death. The value of the pension pot can normally be paid as a lump sum or used to buy an income.
So long as the benefits are paid within two years of the scheme becoming aware of your death, if you die before the age of 75 then benefits are paid tax-free. On your death after age 75, benefits are taxed at the recipient’s marginal rate of income tax.

You should nominate your Grandson as your desired recipient on the appropriate form. The pension trustees are not obliged to follow your wishes but usually do so unless those wishes are seen as unreasonable - eg leaving your pension to the Cat's Home whilst your dependents receive nothing.


Also note that the pension is not part of your estate and so would not affect any Inheritance Tax.

xylophone

I have a small company pension

What kind of company pension, Defined Benefit or Defined Conribution?

Dox

Is it really a company (occupational) pension - does it have a board of trustees running it? If not, more likely to be a personal pension - do the words 'group personal pension' or 'stakeholder pension' appear anywhere on the literature?