The question on what happens when one spouse or civil partner dies is one of the most frequently asked questions, particularly where there is a will. Although UK law of inheritance has some protections of the married couple and civil partners in English law, the situation is more effective. The contents of the will, ownership of property and entitlement to State Pension among others may all influence what you inherit. Being aware of the rules might prevent some unwanted shocks when you already go through a hard experience.
This guide describes what happens to the estate of your spouse, how payments of State Pension are treated upon death and who may be able to claim any extra benefits.
Inheritance Rules in the UK: The Basics
When a wife/husband or civil partner departs with a valid will, the assets as a rule will be shared as per the instructions of the will. This usually entails that you will acquire all that was left to you in the will which may include the whole estate. But, there are cut-offs,When assets belong to two people under unknown tenancy, they may automatically pass to you in the case of the death of the other yet the will is not involved.
Nonetheless, in the event that the ownership takes the shape of tenants in common, the interest of each individual will be held under the conditions of his or her will. Moreover, some of the assets e.g. life insurance policies or pensions will have named beneficiaries, so they are transferred to the named recipient without reference to the will.
Even though there is a will, it can still be contested that dependents feel that they were not reasonably taken care of. They are able to claim against the estate under the Inheritance (Provision for Family and Dependants) Act 1975.
What Happens to State Pension Payments upon the Death of a Person?
The essential thing is that even when the person dies, a State Pension claim does not end automatically. It is important that you inform the Department for Work and Pensions (DWP) so that the payments could be stopped. DWP might as well inform you about whether you are eligible to receive some of the pension of your spouse.
Basic State Pension
Your spouse could be financially better off than you at the same time. If they are already retired before 6 April 2016 then you might be able to boost your own Basic State Pension by transferring their qualifying years to you, which would put you in a better financial position than your spouse, even though they might have retired early.
New State Pension
Inheriting your spouse pension will not be possible- in cases your spouse attained State Pension age on or after 6 April 2016. Nevertheless, you can still have some benefits. To take an example, your marriage or civil partnership in a case where it started on or before 6 April 2016, you may inherit half of their guaranteed payments. Moreover, in case your spouse had postponed receiving pension and was also eligible to receive it according to the provided conditions, then you can inherit the additional amount of pension or a lump sum.
Bereavement Benefits for Surviving Partners
You might be eligible for Bereavement Support Payment, unless you are already State Pension age.This benefit consists of a single-payment and up to 18 monthly payments (depending on the state of decomposing and existence of dependent children).
Inheriting Additional or Protected Payments
You might be eligible to get a money share of some of the Additional State Pension your partner built up as long as your marriage or civil partnership commenced before April 2016. Moreover, your partner might put off the date of claiming his or her pension and, in this case, you might receive deferred pension benefits, which can be offered in the form of a lump sum.
They can be ended though, by remarriage or entering a new Civil Partnership before the State Pension age.
Key Takeaways
Even when there is a Will, a surviving spouse does not automatically inherit everything in the UK. Some of such Canada probate language can be displaced by the form of ownership adoption or special rules that govern special types of property.
With regard to the State Pension, your rights on the inheritance of your pension depend on which one of the two pension schemes available to you, the Basic State Pension or the New State Pension, comes into play, and when your partner first claimed the State Pension.
Moreover, other financial benefits might be in place, e.g. bereavement benefits, or top ups on pensions, that can add to an income once one of a couple is passed.
The death of a loved one is always difficult, and to go through the laws of inheritance and pension regulations may be overwhelming. Clear estate planning offers the best defense: making sure a will is valid, checking ownership of assets and knowing State Pension rights. An adviser or financial advisor, or solicitor, can help protect your own future and won’t leave you short-changed.