Pension money - will we have to settle credit card debt?

millicent

RAS said:

Is he also intestate?

He left no will.

Keep_pedalling

millicent said:

RAS said:

Is he also intestate?

He left no will.

What was his marital status? How old are his children?

millicent

Keep_pedalling said:

millicent said:

RAS said:

Is he also intestate?

He left no will.

What was his marital status? How old are his children?

He was widowed, the children were 17 & 16 when he died but have both since had birthdays.

RAS

Thanks

I'm really sorry his children are placed in this situation. If the pension had remained in place, the lump sum would probably have been outside the estate and at least the younger one might have received a dependant's pension. 

Have you checked in case he had any life insurance?  And read Looking after someone else's child - GOV.UK (www.gov.uk)

Under the rules of intestacy, assuming the father was living in England or Wales, the older one can now apply to administer the estate as it appears to be solvent and they are a joint beneficiary. Other family members can help them, if the youngster wishes.

It might be worth appealing to the credit companies' bereavement teams to see if they will waive or reduce the debt, but they are in no legal obligation to do that.

Marcon

Keep_pedalling said:

millicent said:

RAS said:

Is he also intestate?

He left no will.

What was his marital status? How old are his children?

What does it matter? He withdrew the whole DC pot and then sadly died with nobody but his creditors getting any benefit. It may well have been a perfectly sensible thing to do if he needed the cash and believed himself to be in good health.

Very sad for everyone, especially the children.

Sea_Shell

Was he still working, and already paying income tax?   If so, he wouldn't have even been able to claim the tax back on the 75% ☹️

Keep_pedalling

Marcon said:

Keep_pedalling said:

millicent said:

RAS said:

Is he also intestate?

He left no will.

What was his marital status? How old are his children?

What does it matter? He withdrew the whole DC pot and then sadly died with nobody but his creditors getting any benefit. It may well have been a perfectly sensible thing to do if he needed the cash and believed himself to be in good health.

It doesn’t as far as the pension is concerned or the debt, but it does as far as who can administer the estate and how it is distributed.

Keep_pedalling

Even if he had no income the tax is not recoverable. The tax rules on pensions are there to deter people doing this sort of thing. 

Sea_Shell

Keep_pedalling said:

Even if he had no income the tax is not recoverable. The tax rules on pensions are there to deter people doing this sort of thing. 

You can recover deducted tax of the 75% which falls within your personal allowance.

Marcon

Keep_pedalling said:

Even if he had no income the tax is not recoverable. The tax rules on pensions are there to deter people doing this sort of thing. 

It is recoverable, up to your personal allowance for the tax year (taking into account all other potentially taxable income).

The tax rules aren't there to deter 'this sort of thing' - they are there to limit the amount of tax relief/benefit individuals can get.