Overseas beneficiary of a successor flexi access drawdown pension

chewmylegoff

Hello,

My father died (aged >75) and my mum was named as the sole beneficiary of his flexi-access pension.  She chose to transfer it into a successor flexi-access pension in her own name.  She has now also passed away and I am the beneficiary.

I am struggling to work out what to do with this as it appears to be in some weird twilight zone where the UK consider it a pension for tax purposes but Australia probably do not, leading to it being very confusing what option I should take to receive the benefits.

 I’ve tried to seek professional advice but it’s clear that everyone I’ve talked to has never dealt with this issue (where I am inheriting from a successor of the original pension, not directly from the original pension itself) and doesn’t know the answers but are happy to investigate at great expense. I’m happy to pay for professional advice but would prefer to pay someone not on their own voyage of discovery who actually already knows what they are doing and doesn’t need to do a week of research at £500 an hour.

just looking for recommendations from anyone who has been in this or a similar situation. 

QrizB

I think you've missed out an important bit of info - where does Australia come into it?

- are you resident in Australia?

- were your parents resident in Australia?

- something else?

Marcon

QrizB said:

I think you've missed out an important bit of info - where does Australia come into it?

- are you resident in Australia?

- were your parents resident in Australia?

- something else?

...and were those simply 'resident' as in 'living in Australia' or were they also 'resident for tax purposes'?

chewmylegoff said:

 I’ve tried to seek professional advice but it’s clear that everyone I’ve talked to has never dealt with this issue (where I am inheriting from a successor of the original pension, not directly from the original pension itself) and doesn’t know the answers but are happy to investigate at great expense. 

It's not that unusual a situation, so it's difficult to see why you are having so many issues - although in the wonderland that is pensions there always seems to be some sort of 'reason' or 'exception'! How old was your mother when she died?

chewmylegoff

QrizB said:

I think you've missed out an important bit of info - where does Australia come into it?

- are you resident in Australia?

- were your parents resident in Australia?

- something else?

Yeah would have helped… I am tax resident in Australia and have been for 4 years, my parents were both uk resident at all times.

chewmylegoff

Marcon said:

QrizB said:

I think you've missed out an important bit of info - where does Australia come into it?

- are you resident in Australia?

- were your parents resident in Australia?

- something else?

...and were those simply 'resident' as in 'living in Australia' or were they also 'resident for tax purposes'?

chewmylegoff said:

 I’ve tried to seek professional advice but it’s clear that everyone I’ve talked to has never dealt with this issue (where I am inheriting from a successor of the original pension, not directly from the original pension itself) and doesn’t know the answers but are happy to investigate at great expense. 

It's not that unusual a situation, so it's difficult to see why you are having so many issues - although in the wonderland that is pensions there always seems to be some sort of 'reason' or 'exception'! How old was your mother when she died?

Mum was >75 as well (my reading suggests it only matters how old dad was but I am certainly no expert!)

tacpot12

Blacktower Finacial Management are supposedly an expert in ex-pat financial affairs and so probably have the technical knowledge needed to advice you. I've no connection with them, but have never used them so can't say whether they are good or not, but this is the area they specialise in.  

xylophone

https://www.bantacs.com.au/Jblog/when-you-receive-an-inheritance-from-overseas/

may be worth a read.

Death Benefit etc from a Non Resident Superannuation or Pension Fund

 The tax treatment of these payments varies depending on how the deceased acquired the interest and the type of fund that is making the payment.   There is no alternative if you receive a payment from a non-resident retirement fund than to apply to the ATO for a ruling on your particular circumstances.