Trusts and Inheritance Tax

Administration of pension rights on death

Produced by Tolley
  • 30 Nov 2021 14:01

The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Administration of pension rights on death
  • Fact finding
  • State pension
  • Defined benefit schemes
  • Defined contribution schemes

Administration of pension rights on death

Fact finding

When a person dies, the termination and possible transfer of the deceased’s pension rights should be dealt with in the course of administering the estate. Personal representatives can find out about the deceased’s pension entitlements as part of the information gathering process outlined in the Obtaining the grant of representation guidance note.

If the deceased was in receipt of a pension, the provider must be informed of the death to stop payment, and to obtain details of any outstanding amounts due to or from the estate. Dependants or other beneficiaries may be entitled to continuing benefits. If the deceased had not started to receive a pension but was a member of an occupational scheme or personal pension, death benefits in the form of a lump sum or dependant’s pension will probably be payable.

Pensions in payment can be identified from the deceased’s bank accounts. His personal papers may include pension statements, contracts, payslips, and P60s. Close family members are usually aware of the deceased’s regular sources of income. It is therefore a relatively straightforward matter to identify and obtain contact details of the pension providers who will be able to supply all the information required.

Finding details of pension rights, which are not in payment, can be more challenging. If the deceased was employed when he died, his employer is the obvious place to start. Depending on the deceased’s circumstances and employment history, PRs may need to contact former employers or the administrators of

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information

LEARN MORE LEARN MORE

Popular Articles

Isle of Man

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s

30 Nov 2021 09:21 | Produced by Tolley Read more Read more

Audit of tax

Tax professionals will often be asked to provide input into the financial statement work undertaken by audit professionals. This guidance note is intended to give an overview of some of the key issues when undertaking audit work.This note is an introduction only and is written on the assumption that

14 Oct 2021 18:44 | Produced by Tolley in association with Nick Watson Read more Read more

Tax equalisation

IntroductionTax equalisation is widely used by multi-national companies or group moving employees from one country to another. It is not a statutory concept but is an arrangement between an employer and employee.The idea behind tax equalisation is that an employee accepting an assignment somewhere

18 Oct 2021 13:25 | Produced by Tolley Read more Read more