Will Private Pensions Pass To Mother On Father's Death?

woodbine66

Just a quick one. Unfortunately my 91 year old father is terminally ill in hospital. My mother is now panicking because her only income is her state pension of £108p.w. My father was very traditional and the sole breadwinner - all his money is held in his sole name and he paid all bills, etc.

He has two private pensions, one from Standard Life and other from Dow Services. They are currently paid into his sole current account.

When he passes away, are these pensions likely to die with him, or will my mother (obviously his wife) receive them? Or does it vary and I would need to contact the pension companies to find out?

artyboy

It varies. If these were DC pensions in drawdown, the it would be a question of whether your father had completed an expression of wishes for the pension trustees to pay the residue of the pension pot to your mother.

But from the way you've described this (and also based on what was available to your father back when he likely took his pensions) then these are either DC pensions that were used to purchase annuities - in which case it comes down to whether the annuity purchased made provision for spousal pension benefits on death.

OR they are occupational DB pensions paying out an income for life, which is basically the same as an annuity, but these would more normally come with spousal benefits as standard.

Whatever these are though, it will require looking at the pension documentation or contacting the providers.

threlkeld53

It's very possible that at some point in the past, your father 'nominated a beneficiary' for his pension funds, should he pass on. If so, it's most likely that beneficiary would be your mother.

Are you able to ask your father?
Alternatively, you'd need to speak to the pension companies.

dunstonh

He has two private pensions, one from Standard Life and other from Dow Services. They are currently paid into his sole current account.

Considering he is 91, it's unlikely that the Standard Life plan is a pension.  It is more likely to be a lifetime annuity.  

Annuity death benefits are chosen when the annuity is purchased.    He would have had the choice to go 100% spouse, 50% spouse or no spouse (or some other ratios).   So, the policy document needs to be checked or Standard Life given a call.

I assume Dow services is an occupational pension scheme.    The terms of the scheme would need to be known but typically 50% to spouse was commonplace.

woodbine66

Thanks to all for your replies. The pensions aren't occupational. Unfortunately my parents, although they are still married and lived under the same roof, didn't get on and lead seperate lives. As to wether my father would name her as pension beneficiary, I doubt it.

Unfortunately my father has vascular dementia and Alzheimers among his many health problems. Getting any details out of him will be nigh on impossible. Last two hospital visits he had deteriorated and not really aware we were there.

Looking like I will need to contact the companies when the time comes.

itsthelittlethings

Your mother might get entitled to pension credit if they don't have any savings and she isn't left any of his pension.

Sarahspangles

woodbine66 said:

Thanks to all for your replies. The pensions aren't occupational. Unfortunately my parents, although they are still married and lived under the same roof, didn't get on and lead seperate lives. As to wether my father would name her as pension beneficiary, I doubt it.

Unfortunately my father has vascular dementia and Alzheimers among his many health problems. Getting any details out of him will be nigh on impossible. Last two hospital visits he had deteriorated and not really aware we were there.

Looking like I will need to contact the companies when the time comes.

I think your mother may inherit some of your father’s state pension, given their ages. If not, and there is no survivor pension/annuity then she will get state help.

Do you know if your father has made a will? It will be easier if you are named as executor (or another person close to the family) as lots of the questions may be answered by papers in the house. I saw you’d asked a question in another part of the forum about bill payments.

xylophone

It seems probable that your mother will benefit from the arrangements detailed here page 21 onwards.

https://assets.publishing.service.gov.uk/media/5a758e27e5274a6faebebd94/derived-inherited-entitlement.pdf

27.In every instance where the Dependant reaches SPa in the current system and the Contributor reaches SPa in the current system as well, then the rules will continue to operate as per the current system, which is detailed in Annex A.

Current full basic SP is £169.50 a week.

It seems likely that your father will also have GRAD and SERPS.

Check his SP letter which he is likely to have received last March.

Pension Credit may be a possibility

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf

p00hsticks

Sarahspangles said:

woodbine66 said:

Thanks to all for your replies. The pensions aren't occupational. Unfortunately my parents, although they are still married and lived under the same roof, didn't get on and lead seperate lives. As to wether my father would name her as pension beneficiary, I doubt it.

Unfortunately my father has vascular dementia and Alzheimers among his many health problems. Getting any details out of him will be nigh on impossible. Last two hospital visits he had deteriorated and not really aware we were there.

Looking like I will need to contact the companies when the time comes.

I think your mother may inherit some of your father’s state pension, given their ages. 

Without wishing to raise hopes too much, I think this is more than likely - my father recently passed away at a similar age and my mothers state pension (which had been around the same as the OPs mother) increased significantly as a result (more than doubled), although it did take two to three months to happen after DWP were informed via the Tell Us Once Service. The increase was backdated to the date of my father's death.

OP - is your mothers state pension paid into a bank account of her own ? If it is going into your fathers account I would suggest that you get her set up with one of her own and the pension paid into it ASAP. 

dunstonh

As to wether my father would name her as pension beneficiary, I doubt it.

Its unlikely there are any pension funds, as mentioned higher up.    Either annuity or scheme pension.  

The pensions aren't occupational.

The Standard Life one isn't but the Dow services one is.

As to wether my father would name her as pension beneficiary, I doubt it.

As mentioned higher up, that decision would have been made when he bought the annuity and/or scheme pension.

Easyjet77

Sarahspangles said:

woodbine66 said:

Thanks to all for your replies. The pensions aren't occupational. Unfortunately my parents, although they are still married and lived under the same roof, didn't get on and lead seperate lives. As to wether my father would name her as pension beneficiary, I doubt it.

Unfortunately my father has vascular dementia and Alzheimers among his many health problems. Getting any details out of him will be nigh on impossible. Last two hospital visits he had deteriorated and not really aware we were there.

Looking like I will need to contact the companies when the time comes.

I think your mother may inherit some of your father’s state pension, given their ages. If not, and there is no survivor pension/annuity then she will get state help.

Do you know if your father has made a will? It will be easier if you are named as executor (or another person close to the family) as lots of the questions may be answered by papers in the house. I saw you’d asked a question in another part of the forum about bill payments.

It is not a given that she "will" receive state help. She "may" qualify for state assistance, entirely dependant on her personal circumstances