Money Moral Dilemma: Should I contact my late husband's ex, who's a beneficiary on his pension?

JoeCrystal

https://forums.moneysavingexpert.com/discussion/comment/82061603#Comment_82061603

But as earlier posters mentioned, the Trustees can and does override the wishes of expressions if they consider other potential beneficiaries or are out of date. That is what I was referring to, a wide discretion offered to such trustees. My own group pension scheme administrator made it very clear to me that they will take my wishes into account, but the final decision will always rest with them as to who and to whom they will give lump sum benefit to.

A form e.g does say that 'I’m aware that you have absolute discretion to choose who will benefit from any remaining funds held on my death and that any nomination(s) I’ve made aren’t binding on you.'

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82061603#Comment_82061603

That's a generalisation - as mentioned at MoneyHelper:

Most pension providers will follow your wishes, but they usually have the right to make the final decision

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-problems/pensions-after-death

Marcon

This Money Moral Dilemma is taken from an email a user sent us on Friday, though for obvious reasons we never reveal contributors' identities.

We often get accused of making MMDs up but, as I always say, in the six-odd years I've been the person responsible for putting it together, that's never been the case - believe me my job would be a lot easier if I could!

Doesn't that assume that those emailing you with a 'dilemma' are doing so in good faith and that their perceived dilemma is actually real? I appreciate you are doubtless doing some due diligence behind the scenes, but it's hard to be quite sure that what you're being told…

There is a straightforward answer to this. If the facts are as this newly bereaved lady believes (and clearly I'm in no position to judge), then a formal complaint is the next step. There's no mention in her email of the existence of trustees (not all pension schemes have trustees), so the complaint needs to go to whoever took the decision - IF a decision was actually taken.

The only scenario where a girlfriend from 30-odd years ago could receive a payout via a pension scheme is if there were children from that relationship.

Not so. Some nomination forms are binding (albeit with potential tax consequences) - and without knowing which scheme is involved here, it's impossible to guess. NEST is a case in point:

Taken from: https://www.nestpensions.org.uk/schemeweb/memberhelpcentre/retirement-pot/die-before-taking-money-out.html

zagubov

I know somebody who worked for the Pension Ombudsman who told me some DB pensions were notorious for not even telling survivors their entitlement to money when the survivors phoned them to tell them their partner had died. Just "thanks for telling us" and "Goodbye". Happily that's now a thing of the past.

The last US Civil war widows pension was still being paid to someone in 2020.

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/82061740#Comment_82061740

If this was some years ago, is it possible that there was no entitlement to a widow's pension because post retirement marriage rules applied - meaning only pre 1978 service counted towards widow's benefits?

Irene Triplet, who died aged 90, received a disabled child's pension rather than a widow's pension. But, yes, an incredible fact!

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/82061776#Comment_82061776

Time really does creep up on you. I have a DB pension with a death benefit and I have my grand niece as beneficiary. If I was to die today and she takes the life time annuity option she could be collecting well into the 2100s.

PennysIntoPounds

If the OP is reading this, I'm sorry for your loss.

Completely understand why you would feel the money should go to you but tracking a stranger down and saying her money should be yours is not going to end well.

She might be struggling and/or be really touched or grateful that he 'remembered' her.

I think this is just a reminder to everyone to keep their legal documents up to date unfortunately.

Since you say there's not much money for mortgage and bills and your circumstances have changed, check if you're receiving all the benefits you're entitled to

https://www.moneysavingexpert.com/family/benefits-check/

liselle

Pr'ps there were children

Bostonerimus1

Will the inclusion of DC pensions in the estate for tax purposes change the obligation of trustees wrt beneficiaries, ie will they lose their discretion and be bound by wills and expression of wishes?

LHW99

https://forums.moneysavingexpert.com/discussion/comment/82061805#Comment_82061805

And from April 2027, will there actually be any difference between an expression of wish and a nomination as far as IHT goes? Presumably if you make a nomination, you tie the Trustees hands as to what to do with the pension.