inheriting ex's pension pots???

happiness1

Hi,
My ex ,with whom I share children, died recently. I was named in his will as the benefactor of his estate. He was in a care home and didn't make any contributions to us financially except the bare min via child maintenance service.
He didn't name anyone or make any expression of wish on his pension platforms. He was very ill and the lawyer who held financial power of attorney also made no payments to our children on my ex's behalf.
Are any of us entitled to inherit his two pension pots?

Brie

Work or private pensions?

I know for work pensions the scheme administers will act according to the terms of the scheme as set up with the scheme trustees.  Normally a work scheme will pay out to the named beneficiary unless there's a good argument to pay out to someone else.  (i.e. if an ex is named beneficiary but the scheme member has remarried but not updated their nomination then the administrators may decide to pay out to the current spouse).  But you haven't said if you were a named beneficiary on the pension (s).  And a lot will depend on the type of pension and the scheme rules.  

I would guess that in any case your/his children would be entitled to the pensions.  Are there any others that are not yours?  

Check also if there is a work pension if the children are entitled to money to be paid as orphan pensions which would get them monthly payments now rather than a lump sum (which might also be paid to someone).

RAS

If he died intestate, his children inherit any assets. If below the threshold for the scheme, they may inherit pensions rights, depending on the scheme.

In both cases, you may act as their representative.

Unlikely you'd receive anything personally unless you were nominated in his wishes form.

QrizB

RAS said:

If he died intestate, his children inherit any assets.

He had a will, though?

happiness1 said:

I was named in his will as the benefactor of his estate.

Keep_pedalling

The pensions will not form part of his estate and will not be covered by the will. If they were old fashioned defined benefit type pensions then with no surviving spouse there is nothing to inherit, the same applies if they were annuities. 

Newer DC pensions or SIPPs will have a pot of money (unless it had all been drawn down) and it will be down to the trustees who get it. If he had not made an expression of wishes with the pension companies it will be the trustees who make the decision on who inherits the pensions and they would likely to be his children 

Brie

Keep_pedalling said:

The pensions will not form part of his estate and will not be covered by the will. If they were old fashioned defined benefit type pensions then with no surviving spouse there is nothing to inherit, the same applies if they were annuities. 

Newer DC pensions or SIPPs will have a pot of money (unless it had all been drawn down) and it will be down to the trustees who get it. If he had not made an expression of wishes with the pension companies it will be the trustees who make the decision on who inherits the pensions and they would likely to be his children 

Yes but with a DB there may be orphans pensions if the children are young and still in education.

Marcon

happiness1 said:

Hi,
My ex ,with whom I share children, died recently. I was named in his will as the benefactor of his estate. He was in a care home and didn't make any contributions to us financially except the bare min via child maintenance service.
He didn't name anyone or make any expression of wish on his pension platforms. He was very ill and the lawyer who held financial power of attorney also made no payments to our children on my ex's behalf.
Are any of us entitled to inherit his two pension pots?

Was his will made before or after your divorce? Did your financial settlement at the time of your divorce (if you had a financial order??) take the pensions into account/make any sort of order in relation to these?

Marcon

Brie said:

Work or private pensions?

Work pensions are private pensions. A workplace pension could be trust based, contract based or one of the statutory schemes (eg NHS, Civil Service).

Brie said:

I know for work pensions the scheme administers will act according to the terms of the scheme as set up with the scheme trustees.  

It's the sponsoring employer who sets up a trust based scheme; the trustees then manage it.

Brie said:

Normally a work scheme will pay out to the named beneficiary unless there's a good argument to pay out to someone else.  (i.e. if an ex is named beneficiary but the scheme member has remarried but not updated their nomination then the administrators may decide to pay out to the current spouse).  But you haven't said if you were a named beneficiary on the pension (s).  And a lot will depend on the type of pension and the scheme rules.  

I would guess that in any case your/his children would be entitled to the pensions.  Are there any others that are not yours?  

You're confusing trust based and contract based schemes. If the schemes are trust based, the rules of the scheme will set out what happens on the death of the member. If they've remarried then the current spouse is the spouse and a nomination form can't normally override that. Children would only be entitled if they are 'eligible children' under the rules of the scheme - which usually means under age 18, although if they are still in full time education or training there is often a discretion for the trustees to continue up to (say) age 23; or sometimes if the 'child' was dependent on the member by reason of physical or mental disability, the pension may have no upper age limit.

gm0

The discussion is helpful in general

The likely necessary action is to identify the schemes contact details - carefully and to contact them to log status as dependents - in particular on behalf of any dependent children (age / other reasons as above). 

It is for you and your ex to draw up a financial settlement upon divorce. 

The pension scheme will follow its rules on the facts as of death date and not re-litigate your divorce.

As others have indicated the scheme will need to investigate for legitimate dependents and check ID etc.  So you can expect a few hoops. 

The absence of statement on nominated beneficiary is unhelpful.  Which would have "guided" the trustees to act (after checking there was no conflict or genuine legal objection to the nomination).   Absent that - they have to work it out from first principles and will likely want to see a range of certificates about marriage, divorce, births etc.  So be prepared for that.

Marcon

gm0 said:

The discussion is helpful in general

The likely necessary action is to identify the schemes contact details - carefully and to contact them to log status as dependents - in particular on behalf of any dependent children (age / other reasons as above). 

It is for you and your ex to draw up a financial settlement upon divorce. 

The pension scheme will follow its rules on the facts as of death date and not re-litigate your divorce.

If the parties chose to do so - it isn't a requirement. What is a requirement (in England and Wales) if pensions are to be earmarked or shared, is court approval to do so - the parties can't just agree it between themselves. If there's a court order then the scheme must follow it.

gm0 said:

As others have indicated the scheme will need to investigate for legitimate dependents and check ID etc.  So you can expect a few hoops. 

The absence of statement on nominated beneficiary is unhelpful.  Which would have "guided" the trustees to act (after checking there was no conflict or genuine legal objection to the nomination).   Absent that - they have to work it out from first principles and will likely want to see a range of certificates about marriage, divorce, births etc.  So be prepared for that.

Not necessarily. An increasing number of schemes now include a term saying that in the absence of a nominated beneficiary for death benefits, payment will be made to the estate. If that's the case here, it is potentially subject to IHT depending on the total value of the estate.

If the trustees use their discretion to pay to the estate, it is not subject to IHT.

gm0

Helpful.  Another bodge has been added which while helpful in some circumstances (the not being subject to IHT part - or not yet anyway (2027 and all that). 

But how most consumers are meant to know whether the trustees have completed their admin properly remains an enigma