# what happens to avc's when you die



## noelch (19 Oct 2010)

can anyone tell me please what happens to avc contributions when you die?
if your spouse dies at the same time & there are no dependents do the contributions go into your estate for distribution according to your will.
Thanks


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## Towger (19 Oct 2010)

Before you retire they are part of your estate. When you retire they are used to buy an 'Annuity', which is your pension. When you die (no souse etc) the company you bought it from pockets the any left over money, or if you live to a ripe old age they take the hit on the loss!

This is why long term many people like to have their 'pension' in property. It brings in an income and when you die you can leave it to your children.


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## LDFerguson (19 Oct 2010)

Towger said:


> Before you retire they are part of your estate. When you retire they are used to buy an 'Annuity', which is your pension. When you die (no souse etc) the company you bought it from pockets the any left over money, or if you live to a ripe old age they take the hit on the loss!
> 
> This is why long term many people like to have their 'pension' in property. It brings in an income and when you die you can leave it to your children.


 
An annuity is one of two options.  AVCs can also be used to invest in an Approved Retirement Fund (ARF), subject to certain restrictions.  If you haven't used up your ARF when you die, the unused part can be pass on to your estate.


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