# What happens my pension fund if I die?



## Yellow Belly (25 Nov 2008)

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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## Yellow Belly (25 Nov 2008)

Anybody any idea re this issue?


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## dereko1969 (25 Nov 2008)

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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## Yellow Belly (25 Nov 2008)

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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## FredBloggs (25 Nov 2008)

Unless you are going to die this afternoon I'd have a bit of patience!


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## St. Bernard (25 Nov 2008)

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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## NorfBank (25 Nov 2008)

FredBloggs said:


> Unless you are going to die this afternoon I'd have a bit of patience!


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## Conan (25 Nov 2008)

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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## Yellow Belly (25 Nov 2008)

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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## PaddyBloggit (25 Nov 2008)

Yellow Belly said:


> 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!
> 
> ...



Glad to see that your existence will continue for another while


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## PaddyW (25 Nov 2008)

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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## jpd (26 Nov 2008)

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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## St. Bernard (26 Nov 2008)

Conan said:


> 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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