INHERITANCE TAX AND PENSION

eastie_2

How long does it take for the Pension people to contact you when you are Executor of your parents Estate.?
 I am doing her (my mothers) Inheritance Tax and you cannot get hold of anyone from Pensions to complete the form.
I know they are short staffed at the moment but does it take weeks or months are its holding up probate

Vasquez65

Which ‘pension people’? 

If it’s the DWP,   I had a letter from them very quickly after notifying them of my Father’s death and in any case you din’t need to put in a figure in the IHT form if they owe you a few weeks pension.
I also had a fast response from Legal and General about his Personal pension to say the pension had now stopped and there was no money owed.
You don’t say if your mum was in receipt of a pension.

Albermarle

If you are not  talking about the State Pension and it was a DC pension ( with a specific pot of money left ) it should not be included in any will or be part of any inheritance tax calculations. This is because these pensions are held in trust and the trustees decide where the money goes . Normally your Mother will have filled in a Beneficiaries form ( maybe many years ago) naming who should be the beneficiary (s) . If she did not fill one in, the Trustees have to decide what to do .
If it was a final salary type scheme and she has no living spouse , it just stops on her death and nothing left .

Dox

eastie_2 said:

How long does it take for the Pension people to contact you when you are Executor of your parents Estate.?
 I am doing her (my mothers) Inheritance Tax and you cannot get hold of anyone from Pensions to complete the form.
I know they are short staffed at the moment but does it take weeks or months are its holding up probate

If you're talking about state pension, this is paid in arrears so there won't be anything to be 'paid back'. Your mother's estate might be owed a few weeks of state pension payments, but it should be easy enough to calculate a rough value for this - check her bank account for the last payment and then pro rate accordingly to the date of her death. It certainly shouldn't be holding up anything.

xylophone

this is paid in arrears so there won't be anything to be 'paid back'.

People drawing the state pension weekly pre April 6 2010 were paid in advance.

http://news.bbc.co.uk/1/hi/business/8348264.stm

dunstonh

How long does it take for the Pension people to contact you when you are Executor of your parents Estate.?

Pensions are outside of the estate.  So, it doesnt have to be the executor.  However, the pension companies will act once they are notified of the death.     Quickest turnaround I have seen is a week.  More typically a month.

 I am doing her (my mothers) Inheritance Tax and you cannot get hold of anyone from Pensions to complete the form.

The vast majority of pensions are not included in the estate.    So, you would not expect any forms regarding IHT to be needed.

I know they are short staffed at the moment but does it take weeks or months are its holding up probate

And again, probate does not apply to most pensions.

Why do you think this pension is included in the estate?  (as said, there are rare cases where it applies but not on mainstream retail personal pensions, stakeholder pensions and most SIPPs)

Mg13

If a family member has surplus income from a pension, can they regularly gift it to another family member over the age of 18 and it not be liable for IHT?  Thanks

Dox

Mg13 said:

If a family member has surplus income from a pension, can they regularly gift it to another family member over the age of 18 and it not be liable for IHT?  Thanks

Googling gets you plenty of explanations of when you can do this - try https://www.moneyadviceservice.org.uk/en/articles/gifts-and-exemptions-from-inheritance-tax (scroll down towards the bottom of the page).