Changing pension beneficiaries after death of pension holder

emmaj1045

Sorry for the slightly complicated question, I have been googling without success. 

My father in law passed away suddenly at the age of 69. His estate together with my mother in law is about two million. He had a very large defined benefit pension so had not touched his contributory pension pots which are worth approximately £400k. 

He hadn’t done any financial planning apart from leaving everything to my MIL. She would like to pass on some money to her three children as two have yet to buy a house but her health isn’t great so she may not live the seven years if she simply gifts it now. 

Would she be able to ask the pension company to give the pension pot to her children rather than to herself?  If my FIL had done any financial planning it would have looked like a sensible thing I think as it is officially outside his estate?
Thanks for any advice or any pointers on where my MIL should go to get advice on inheritance tax planning. 

p00hsticks

emmaj1045 said:

Would she be able to ask the pension company to give the pension pot to her children rather than to herself?  If my FIL had done any financial planning it would have looked like a sensible thing I think as it is officially outside his estate?

Thanks for any advice or any pointers on where my MIL should go to get advice on inheritance tax planning. 

There's nothing to lose by asking, is there ? Tell her to give it a go and see what they say. As you say her health isn't good the risk is that it could probably be classed as deprivation of benefits if she later needs state funding for care, but if she get a DB pension as a widow and with the size of the remaining estate then this eventuality seems unlikely.

If the pensions are held in trust - and the fact that you say they are outside the etsate suggests they are  - then the pension trustess have a certain amount of discretion, and if the nominated beneficiary says that they wish to decline the pension and pass it elsewhere they may take notice. They may want to assure themselves that she's not been put under undue pressure though.

elouise01582

Sometimes when pension placeholders are completing expression of wish forms or nomination forms they should consider including possible beneficiaries, say grandchildren for a small percentage of the proceeds as this can make it easier for the scheme trustees to vary the percentages paid out - easier than if they are not mentioned at all - or so I understand.

sheramber

Did your  FIL leave a will?

Could a dedd of variation be made to pass some on the estate to the children?

elouise01582

Pensions are outside of the Estate so a deed of variation would not work in this instance.

sheramber

 Wasn't thinking of the pension but from the rest of the   estate.