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  #1  
Old 25-11-2008, 03:07 PM
Yellow Belly Yellow Belly is offline
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Default What happens my pension fund if I die?

In the event of my death- what happens to my pension fund? I assume it transfers to my wife?

She is only 36 years old, and I have a fund of approx. 240k at the moment with pension term assurance of 1.25m attached to the fund. If I died I have been told that my fund would be increased by the 1.25m, and that my wife could use the fund to provide a pension for herself- is this correct?

When can she draw these monies- when I died or would she have to wait until she was 60?
Would she get 25% of the fund tax free like I would?
Would any tax i.e. income tax or probate be deducted before she had access to the money?
How long does it usually take before she could access these monies?

Apologies for the technical queries but just a bit worried about how this would work as almost all my life cover is pension term assurance.
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  #2  
Old 25-11-2008, 03:48 PM
Yellow Belly Yellow Belly is offline
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Default Re: What happens my pension fund if I die?

Anybody any idea re this issue?
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  #3  
Old 25-11-2008, 04:29 PM
dereko1969 dereko1969 is offline
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Default Re: What happens my pension fund if I die?

41 minutes waiting on a reply before you post again? i'm sorry i can't help but if you wait a while longer i'm sure someone will.
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  #4  
Old 25-11-2008, 05:07 PM
Yellow Belly Yellow Belly is offline
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Default Re: What happens my pension fund if I die?

Is nobody going to die before drawing their pension? I would have thought that this issue would concern more people- obviously not!

If there is anybody out there with this technical knowledge I would appreciate any advice at all.
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  #5  
Old 25-11-2008, 05:27 PM
FredBloggs FredBloggs is offline
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Default Re: What happens my pension fund if I die?

Unless you are going to die this afternoon I'd have a bit of patience!
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  #6  
Old 25-11-2008, 05:50 PM
St. Bernard St. Bernard is offline
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Default Re: What happens my pension fund if I die?

In most schemes your pension fund value will be drawn down by the trustees upon receipt of the relevent death / birth certificates from your next of kin and a cheque for the value of your fund (plus any other benefits) will be paid out tax free to your next of kin.
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  #7  
Old 25-11-2008, 05:54 PM
NorfBank NorfBank is offline
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Default Re: What happens my pension fund if I die?

Quote:
Originally Posted by FredBloggs View Post
Unless you are going to die this afternoon I'd have a bit of patience!
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  #8  
Old 25-11-2008, 05:57 PM
Conan Conan is offline
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Default Re: What happens my pension fund if I die?

Yellow Belly,
I hope you are stiil with us. If so...... here is the answer:

Depends on whether you are operating a Self Employed Pension or an Occupational Pension.

If Self Employed:
  • The full value (Pension Fund + Life Cover) would be paid to your estate. In so far as this goes to your spouse (Will???) she will get it tax free in cash to do with as she wants. Subject to Death Cert and Probate she should get the cash fairly quickly.
If an Occupational Pension:
  • An amount of 4 x Salary (plus any personal contributions you made to the Scheme) is paid to your Spouse. There is no tax liability on this.
  • Any balance must be used to buy an Annuity (a guaranteed income for life) from an Assurance Company. The Annuity will be taxed as income.
Hope this helps.
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  #9  
Old 25-11-2008, 06:26 PM
Yellow Belly Yellow Belly is offline
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Default Re: What happens my pension fund if I die?

I'm ALIVE!!!! Just about as I was out too late last night!!!! The gin must have been giving me morbid thoughts earlier!!!

Thanks guys!

Conan- it is a self employed personal pension- so am I correct in assuming that if I died today (lol!) her in doors would get €1.49m tax free?

Maybe I might sleep with my eyes open for a few nights if she ever found this out!!!!
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  #10  
Old 25-11-2008, 07:33 PM
PaddyBloggit PaddyBloggit is offline
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Default Re: What happens my pension fund if I die?

Quote:
Originally Posted by Yellow Belly View Post
I'm ALIVE!!!! Just about as I was out too late last night!!!! The gin must have been giving me morbid thoughts earlier!!!

Thanks guys!

Conan- it is a self employed personal pension- so am I correct in assuming that if I died today (lol!) her in doors would get 1.49m tax free?

Maybe I might sleep with my eyes open for a few nights if she ever found this out!!!!
Glad to see that your existence will continue for another while
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  #11  
Old 25-11-2008, 08:26 PM
PaddyW PaddyW is offline
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Default Re: What happens my pension fund if I die?

Conan, re the occupational pension and it going to next of kin. I am single, so would this automatically go to my parents or do I need to have this put down in a will? My company match my contributions and I have been in the scheme more than two years, would my parents get all these contributions also towards the anuity?
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  #12  
Old 26-11-2008, 10:56 AM
jpd jpd is offline
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Default Re: What happens my pension fund if I die?

Most pension schemes will have a form where you state you would like to be the beneficiary. However, the last word rests with the pension fund Trustees but in general they will respect your wishes, unless they are manifestly unfair.
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  #13  
Old 26-11-2008, 11:23 AM
St. Bernard St. Bernard is offline
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Default Re: What happens my pension fund if I die?

Quote:
Originally Posted by Conan View Post
If an Occupational Pension:
  • An amount of 4 x Salary (plus any personal contributions you made to the Scheme) is paid to your Spouse.
Up to a maximum of 4 x Salary that is. Check with your scheme administrator / trustee to see what your cover is.
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