SIPP Beneficiaries being Challenged

tiredandtested1

Suseka97 said:

You've had a lot of good advice already, and I have no experience of such matters - but I note that whilst your step-mother has legal representation helping her, you do not.  Have you considered speaking with a solicitor who deals with family law. probate matters to see whether you have any legal standing with regards to the wider estate?   If you were able to have a short/free consultation it might be beneficial or at least help you come to terms with the situation.  Just a thought.

Thank you for your input. Yes my sister and I have discussed the wider situation with two different solicitors. We have spent £3k on consultations. There are options if we have the appetite to pay further thousands to challenge her receipt of assets that would have been split in the event of a divorce. It’s a gamble. As his name was never on the marital home, it will be very difficult to prove his contributions (we also have no access to his bank statements etc as we are not personal representatives of the estate). All the other assets were in joint names so go to her (right of survivorship). For me, no amount of money is worth another year or two of my life lost. My young children are suffering as I am so caught up in this. I am a key worker on a low salary, it takes me a month to pay for 3 hours of solicitor advice and this makes me sick. I am not up for the challenge and wouldn’t want to risk losing the money that we potentially receive from the SIPP. She’s toxic. I just want her out of our lives.

Suseka97

Well, I have to say I'm so sorry you and your sister have found yourselves in this situation and I agree that the sooner you can put this all behind you, the better.  Look forward and enjoy being present with your family  I'm a firm believer in 'karma', also that bitterness is bad for the soul, so it's good to let things go in the long run.  I wish you well for the future.

tiredandtested1

Suseka97 said:

Well, I have to say I'm so sorry you and your sister have found yourselves in this situation and I agree that the sooner you can put this all behind you, the better.  Look forward and enjoy being present with your family  I'm a firm believer in 'karma', also that bitterness is bad for the soul, so it's good to let things go in the long run.  I wish you well for the future.

Thank you for your kind thoughts. I agree, life is too short to be bitter, and small children help you keep what’s important in perspective. We’ve lost Dad, and that’s the most devastating part of all this.

TVAS

You have to speak to a solicitor you cannot do this on your own. Your dad should have made a will, he did not, he also should have gifted you some assets that he owned whilst he was alive. This is the trouble with second marriage the last survivor usually the wife gets the lot unless the husband makes proper provision. It does sound like he wanted you to have his pension and the second wife has everything else. Go to a solicitor. The EOW is not legally binding. The Pension provider should take a holistic view i.e. the wife has had of it and the pension has always been earmarked for the daughters of the first marriage. Good luck.

TVAS

If you get no joy take it to the Financial Ombudsman Service. If they rule in your favour the maximum award they can give is £355,000 you would have to take the company to court for the difference. If you accept the Fos amount you cannot claim for the difference thereafter,

dunstonh

TVAS said:

If you get no joy take it to the Financial Ombudsman Service. If they rule in your favour the maximum award they can give is £355,000 you would have to take the company to court for the difference. If you accept the Fos amount you cannot claim for the difference thereafter,

As the OP has engaged solicitors, the FOS will not get involved.     It is also unlikely the FOS would get involved unless there is a serious error of judgement going on. That does not seem to be the case here as its between two parties who both have valid claims to be made.

 Yes my sister and I have discussed the wider situation with two different solicitors. We have spent £3k on consultations.

You mention a divorce was going on.  In that scenario, his assets would have been shared.    It is unlikely she would have got everything. He would have come out of it with something and it is unlikely that he would want her to get those assets in the event of his death.     So, if her argument is that she would have got some of his pension, then I would have thought the counter-argument would be that you would have received some of his estate.      The trustees consider the whole scenario and knowing that she is retaining the whole estate despite the divorce proceeding, they may take a different view with the pension.

With the nomination being made not long before death and after divorce proceedings had started, his views are very clear to the trustees.  

ultimately, a solicitor is the best option here and after £3000 of spending, you should have had plenty of specific advice so far. 

xylophone

 This is an extremely unfortunate situation but It seems to me unlikely that you and your sister would receive no benefit from the SIPP.

Even if only half between you, £100,000 should make quite a difference to your life?

tiredandtested1

xylophone said:

 This is an extremely unfortunate situation but It seems to me unlikely that you and your sister would receive no benefit from the SIPP.

Even if only half between you, £100,000 should make quite a difference to your life?

It will. But I would rather the rest of his life’s work wasn’t going in her back pocket to fund her champagne lifestyle. 

tiredandtested1

dunstonh said:

TVAS said:

If you get no joy take it to the Financial Ombudsman Service. If they rule in your favour the maximum award they can give is £355,000 you would have to take the company to court for the difference. If you accept the Fos amount you cannot claim for the difference thereafter,

As the OP has engaged solicitors, the FOS will not get involved.     It is also unlikely the FOS would get involved unless there is a serious error of judgement going on. That does not seem to be the case here as its between two parties who both have valid claims to be made.

 Yes my sister and I have discussed the wider situation with two different solicitors. We have spent £3k on consultations.

You mention a divorce was going on.  In that scenario, his assets would have been shared.    It is unlikely she would have got everything. He would have come out of it with something and it is unlikely that he would want her to get those assets in the event of his death.     So, if her argument is that she would have got some of his pension, then I would have thought the counter-argument would be that you would have received some of his estate.      The trustees consider the whole scenario and knowing that she is retaining the whole estate despite the divorce proceeding, they may take a different view with the pension.

With the nomination being made not long before death and after divorce proceedings had started, his views are very clear to the trustees.  

ultimately, a solicitor is the best option here and after £3000 of spending, you should have had plenty of specific advice so far. 

Thanks, dunstonh. I have raised all your points in my letters to the trustees. I have fully appraised them of the situation. In my opinion, she is incorrect to say that she should have the SIPP because she would have been awarded half in a divorce. If they had divorced, all their assets would have been divided. She would have had to split the marital home that he had lived in and paid towards during the 12 year relationship. As he has died, she can keep all her assets, inherit jointly owned assets and potentially, a percentage of the SIPP.

Can I ask, are you suggesting solicitors, because you think the trustees will take more notice of the above points, that have all been raised in my previous communications, if they come from a solicitor?

Thanks. 

rjmachin

I have learned from this thread that the beneficiaries listed on my pension are not legally binding.

I had not realised this before, and indeed I have just had a look at the form you fill in for my pension that it says at the bottom that this is the case.

Does having a will change this, or is it still at the discretion of the Trustees of the Scheme?