pension beneficiary

macman

Why would you not? it's trivially easy to name your beneficiary. If you have online access to the pension, you can normally name or update the beneficiary from there. 
At worst, you sign a form and post it.

Marcon

BooJewels said:

I can't answer for @sheramber - but I got my pension payout, the additional checks only added two or three weeks to the process.  

I think it's part of the process that's peculiar to pension payouts and that they're decided upon by trustees - a process that puts them outside of the estate.  They need to be seen to gather information and make an informed decision and for it therefore to be 'at their discretion'.  The two smaller pensions I got paid out didn't go through that process.

As mentioned in my post above, it isn't 'putting them outside of the estate' - it is putting them outside of any IHT liability. That's an important distinction!

bobster2

Marcon said:

BooJewels said:

I can't answer for @sheramber - but I got my pension payout, the additional checks only added two or three weeks to the process.  

I think it's part of the process that's peculiar to pension payouts and that they're decided upon by trustees - a process that puts them outside of the estate.  They need to be seen to gather information and make an informed decision and for it therefore to be 'at their discretion'.  The two smaller pensions I got paid out didn't go through that process.

As mentioned in my post above, it isn't 'putting them outside of the estate' - it is putting them outside of any IHT liability. That's an important distinction!

Well they are also outside of the estate in the sense that they do not form part of the residuary estate to be divided up to beneficiaries according to what is stated in the will.

I'm not sure exactly what distinction you are referring to as all advice I've seen describes pension lump sum death benefits as not forming part of the estate. In what sense do you see them as forming part of the estate? 

https://lindermyers.co.uk/for-you/trusts-estates/trusts/pension-and-death-benefit-trust/

Death benefits from most pension schemes (and from some life insurance policies) do not form part of your estate as they are held by the pension scheme trustees. 

BooJewels

bobster2 said:

Marcon said:

BooJewels said:

I can't answer for @sheramber - but I got my pension payout, the additional checks only added two or three weeks to the process.  

I think it's part of the process that's peculiar to pension payouts and that they're decided upon by trustees - a process that puts them outside of the estate.  They need to be seen to gather information and make an informed decision and for it therefore to be 'at their discretion'.  The two smaller pensions I got paid out didn't go through that process.

As mentioned in my post above, it isn't 'putting them outside of the estate' - it is putting them outside of any IHT liability. That's an important distinction!

Well they are also outside of the estate in the sense that they do not form part of the residuary estate to be divided up to beneficiaries according to what is stated in the will.

I'm not sure exactly what distinction you are referring to as all advice I've seen describes pension lump sum death benefits as not forming part of the estate. In what sense do you see them as forming part of the estate? 

https://lindermyers.co.uk/for-you/trusts-estates/trusts/pension-and-death-benefit-trust/

Death benefits from most pension schemes (and from some life insurance policies) do not form part of your estate as they are held by the pension scheme trustees. 

That was sort of the point I was making - the OP mentioned having a Will with everything going to his partner.  But he could equally specify that the assorted pension proceeds should go to someone else and not automatically to his partner.  The funds from any pension payout where trustees have made a decision don't get divvied up amongst residuary beneficiaries along with everything else.  I too had a life insurance benefit as part of the pension, which was also treated in the same manner.

In the explanatory notes for the pension I benefitted from, it states that if the pension holder allows the trustees 'discretion' then:

"...the scheme administrator doesn’t have to abide by the member’s wishes, so the value of the death benefits usually wouldn’t be included in the deceased member’s estate and IHT would be avoided."

Conversely, if the pension holder states exactly where the benefits must go and removes the trustees right for discretion, then it does form part of the estate and IHT is payable. 

So both facts are true, it's not necessarily 'an important distinction' - it doesn't form part of the estate (so isn't part of the residuary funds), therefore also doesn't count towards IHT.

sheramber

rickyroma said:

sheramber said:

It was the same for me.

I was named beneficiary, I inherited everything under the will, and my sons insisted to the pension company that the money was due to me, but the pension company told us they had to establish who  was entitled to the money.

Sorry to be nosey (!), but did you get the money eventually? 

yes, but it was a couple of months until it was sorted.