Death in Service beneficiary

Sunflower2102

Can anyone help? I’ve been put down as a beneficiary for a death in service policy by my dear friend. He has split this between me and his daughter who is a minor. He is still legally married so his family believe this can be contested. There is no will and this isn’t part of an estate. I’m worried that this is going to be messy when I am grieving my closest friend. I will seek legal advice but wondered if anyone on this could help.

Silvertabby

Death lump sums are paid at the discretion of the fund trustees. Whilst the terms and conditions state that the trustees will normally abide by the expression of wishes/nomination form, the circumstances you describe could certainly be contentious.

I would encourage him to re-think this. If he were to make a will, then he could leave you a nominal sum or gift this way - not what could be several £Ks of a benefit that should make life easier for the widow and child (bearing in mind that the child's money will be held in trust until he/she is 18).

...... or are you saying that although he is still legally married, you are living together as partners? If so, then that will certainly give the trustees something to chew over. I've seen cases like this go either way - it would probably depend on how long you have been living together.

Sunflower2102

He has passed away and no we don’t live together but the best of friends. There is no will at all. Thanks so much for responding.

Flugelhorn

I am sorry to hear of your loss.

I think the best thing to do would be to leave this to the trustees - it will be up to them. If the family challenge it then it is the trustees who will deal with them. It could be that if the family are not financially dependent on him, they will follow the wishes of the deceased. I appreciate that if the trustees do allocate the money to the family then you may not wish to challenge it.

Robin9

Is the easiest way to decline the payment ?

pphillips

Robin9 wrote: »

Is the easiest way to decline the payment ?

No - the easiest way is to accept the payment and then gift that amount to someone else.

Marcon

Legal advice won't help you any more than the help you can get from TPAS, free (and probably far better informed): https://www.pensionsadvisoryservice.org.uk

That said, you don't actually need legal advice, so don't start squaring up for a fight which isn't yours. The decision is down to the trustees of the scheme. All you need to do is abide by what they decide.

Sea_Shell

Had he told you he'd done this? If so, what was his reasoning? Had you agreed to help raise his child if something happened to him? How far off 18 are they?

If you weren't in a relationship (couple), and not financially dependent on him, it's unlikely they'll honour his wishes, with a minor child to consider.

If he's been separated (but not divorced) for some time, I can see the trustees deciding to grant the whole sum to the child. Trustees would then be needed, to look after that.

Is his child that of his current spouse?

Are his parents still alive?

Sunflower2102

He did as we were the best of friends and have been for years. It's a death in service so nothing to do with his estate and his child has been catered for through pension and the other proportion of the death in service. There is so much conflicting information, it's not the money it's the process that will go with it. Thanks for taking the time to reply.

GrumpyDil

No one can really give you meaningful advice without the full story. Was he still with the mother of his child of were they separated as that is likely to have a bearing on this. Did he provide any written explanation as to why he made a nomination in your favour?

That said, as has been pointed out the nomination is just an expression of his wishes. The trustees of the scheme will have the final say in what happens here.

Sunflower2102

No just the actual form, I just trying to get mentally ready for any contention. I will seek advice from a lawyer as so much conflicting information. Thanks for your reply appreciated.