Distribution of death benefit

[POAPITA]

If the death benefit does not form part of the estate of the deceased, can the administrator-there is no will-distribute the death benefit as he/she chooses? I’ve been told that because it isn’t part of the estate that intestacy rules don’t apply. Is this correct? TIA

No. If it’s not part of the estate, the administrator has no authority over it.

Are you talking about a death is service benefit? That would have a named beneficiary.

It will either be decided by the trustee of the fund or directly to a named beneficiary.

Yes, sorry, it’s a death in service benefit but there’s no named beneficiary. There are 3 children of which 2 are adults and one child; no spouse.
Who is the trustee? Is it somebody at the company who is paying this out? We were told the funds would be released to the administrator on receipt of the letters of administration.

That’s right. It's benefit given by the employer. It’s not something the deceased owned it ever had a right in.

So who decides how it’s distributed?

it would be the trustees of the scheme

Are you sure there is no beneficiary named? We’ve always had to state someone when I’ve had this policy through work.

I think there are 2 types of scheme, one which there are definitely defined beneficiaries decided by the individual and this ends up as part of the estate and would have to be distributed by intestacy laws - the other is more common and the stated beneficiaries are only "wishes" and the actual distribution is decided by the trustees.
I am wondering if the trustees are expecting you to distribute as per intestacy ie equal to each child

The trustees of the scheme get to choose if the person didnt nominate their wishes.

The trustees could choose to give it to the estate if they wish and then the administrator can distribute in line with the estate.

If there are adult and child children then it’s worth getting into the details of the scheme and any associated pension - many have provision for support payments to dependent children over and above the basic pay out.

The trustees decide where they feel it should go. They don’t have to follow the ‘wishes’ so if perhaps someone did it 20 years ago and was now remarried they can consider the new spouse

The beneficiary named was an ex spouse so I’ve been told it now goes according to intestacy rules by the company but the person who is the estate administrator says it will be divided as they see fit. I’m not sure if they can do this.

It’s nothing to do with intestacy rules - it’s totally out of the estate. It’s up to the trustees - have you wrote to the trustees ?

There are 2 types.

In trust. Beneficiaries ultimately decided by the trustees (who should pay it out directly). There could be nominated beneficiaries, but this would be wishes only, and ultimately the trustees COULD decide to pay out elsewhere.

Not in trust. Paid to the executor/administrator of the estate and to form part of the estate to be distributed in accordance with the will/intestacy rules.

I will telephone them on Tuesday. I think the eldest who will be the administrator is going to do as they please from what they are saying.
There is extra provision for the youngest.
There is no new spouse to consider, only the 3 dc.

Surely it was be shared equally to their nok ? ( 3 children irrespective of ages )

I would have thought it would be paid equally but the administrator is saying they will divide it depending on if any of the dc get more from somewhere.
The information I have read says the death benefit will be paid either to the nominee or personal representative and that it doesn’t form part of the estate.