IWC Estate Planning & Management Ltd. Regulated by the Society of Will Writers & Estate Planning Practitioners Registered Office: Suite 43-45 Airport House, Purley Way, Croydon, CR0 0XZ. Registered in England No. 4532330

Your Pension After Your Death

The majority of people with private or workplace pensions are able to begin collecting it - and

hopefully will collect it for many years - before their deaths. However, if you die early, before

the pension can start to be collected, then what happens? Where does the money go, and who is

able to collect it instead of you? What arrangements do you need to take?

If the pension is a workplace arrangement, then it is possible to complete an Expression of

Wish form in case you die whilst still in employment. This form, which should be kept safe with

your will, will name the person to whom you wish your pension money to go if you die before

being able to collect it. The pension will then be transferred to the person named on your death.

If your pension plan is a private one, then it is best to check the terms and conditions, as it may

well spell out what would happen should you die. Many personal pension plans offer a one off

payment of whatever the plan is worth once you die, and when you completed the application

form, you may have had to name a beneficiary. If you're not sure, or you can't remember, it is

worth checking, and updating if no one is named (or someone whom you would now prefer not

to receive your pension money).

It is possible to arrange a pensions bypass trust, which means that rather than the money being

paid out upon your death, it will go straight into a trust. This way, your family can still benefit

(especially if you choose to leave the money to young children), but the money does not make up

part of your estate, which lowers tax bills for your loved ones.

If your pension is a state one, there is no provision for it to be transferred to anyone else.

However, your spouse may be able to use your contribution record (which needs to be 30 years

of paying National Insurance in order to gain a full state pension) in order to gain their own state

pension, if their contributions are not high enough.

In addition to this, they will receive a £2000 tax free lump sum, known as a 'bereavement

payment'. As well as this, those over 45 can also claim Bereavement Allowance for a year after

their spouse has died. The amount of this benefit depends on age, starting at £29.30 a week and

rising to £97.65. If children are involved (under 19), then there is another payment (the Widowed

Parents' Allowance) which could bring is another £97.50 a week. This is only available to

married couples and civil partners, not unmarried couples.

Call us for a quote, instant help or impartial advice on Freephone

0800 612 6105 or 020 8150 2010