Anyone with experience/knowledge about death in service?

[poormanspombears]

I am trudging my way through my husband death admin and I'm getting quite frustrated.

He dies intestate which is just proving to be a nightmare.

He has a death in service benefit which is held in a trust. The trustees hold a meeting and discuss whether they'll pay it and then decide who they pay it to. I've had to disclose myself and his children who are all minors. One is his and the younger two are shared.

My 'worry' (and I use that word loosely because I find this whole money business is making me appear ugly to bystanders) is that they're going to divide by 4 and actually pay out to the oldest child's mother who will just plunder it on make up and fake nails.

How understanding are these 'trustee' types and what's the likely logical decision?

I'm not a gold digger, this will not make me rich, but it could change the quality of life for me and my children by giving them access to things like swimming lessons, maybe a holiday that is out of this country.

Please withhold any judgement. I'm very delicate at the moment and I'm the target of a lot of peoples vitriol.

I received a death in service payment when my husband passed away. I provided dates of birth for my 3 children as well. They were all over 18 and I was paid the whole amount and distributed it as I wanted. I don't know how it works if you have stepchildren. You are definitely not greedy or a gold digger - you are entitled to the money and it definitely helps. Best wishes to you and your family

I'm sorry you're dealing with this.

Had he nominated anyone? Our place does it with the new starter paperwork, it's separate from a will.

If so, generally trustees will pay to whoever was nominated unless compelling reason not to. Only reason it's structured this way is for tax purposes so it doesn't form part of his estate.

Can't comment on death in service but my child has money in trust from her late father, they are pretty accommodating assuming you can evidence what you want to spend money on.

Nobody will be able to offer guarantees but unless he had gone to the trouble of nominating his ex, I'd be surprised if they paid it out to his ex when he was married to you. If she wasn't his nominated beneficiary and she's not a dependant, his next of kin, or presumably his legal personal representative then it would be odd for them to pay the benefit to her I would have thought.

Those are the categories of people our policy says will be considered anyway.

@Craftysue thank you so much for your reply and sorry for your loss.

I just sat here handwringing thinking such significant opportunities are available to my children and they're in the hands of other people.

Just to add... he didn't complete his beneficiaries form so there are no nominated recipients.

I'm NOK legally and he was estranged from his family except his son with whom he had sporadic contact with.

Did your husband nominate you to receive the money? I know my husband did. The money was also paid out extremely quickly - my husband's company were brilliant and HR couldn't have done more to help.

Did he fill in the nomination form - that is key.

Trustees have a great deal of discretion to whom they pay the money but it is pretty rare for them to overide the direct instruction of the deceased unless thereis a very good reason.

In 30 years in the field, I only saw this happen a couple of times.

Just seen your update - as his wife I would still expect you to get at least a good portion of it. Maybe worth seeing a solicitor for advice - sorry I can't be more helpful x

@Craftysue you've been extremely helpful. Thank you.

@Elphame no he didn't unfortunately because I would have had to do it for him. He wasn't great with admin.

@atticstage thank you. I certainly don't think he did, but I'm prepared for surprises at this stage to be honest!

I have acted as a Pensions Trustee for a works pension in the past, and did have the duty of signing death in service benefits - guidance was given by the staff accountable for pensions, and if instruction had not been given they did their very best to work out what the deceased wishes would have been. As PP mentions if wishes were expressed it would be extremely rare for trustees to override - the situation where this would occur is where someone made an expression of wish but their life circumstances changed, and they had not updated their expression of wish.

@CheeseLizard21Blue
Thank you for replying, that's helpful.
I don't think he has ever nominated anyone. I've found 4 pensions so far too and nothing.

I just find it weird that some strangers have to decide what they think he would want when I don't even know what he would want!

Sorry for your loss, it's hard to cope with, without the added financial hassles.

My wife was in the LGPS and they contacted me and just asked who was entitled to claim.

Maybe just me, but I felt like it was blood money.

I can't bring myself to spend it.

Sorry, edited to say that the people running the DIS don't have to use the named beneficiaries. They can decide based on information received. Naming beneficiaries is more like a preference rather than a demand.

@billyt it is a shame that you don't feel you can spend it.

Death in Service benefit is a life insurance bought another way. It is part of the benefit you're paying for with your pension contribution each month, and it really isn't any different to being entitled to the dependants' pension.

Would it help to look at it as a Life Insurance payment? Or as a lump sum from the dependants' pension?

It would be a shame not to use a benefit that was paid for during life exactly so that you would have money to help in the worst situation

My dad namesd me as the beneficiary for his death in service payment. Most of it went on paying for his funeral but I recently got a letter from HMRC saying that I would have to pay tax on it.