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Deceased's Guaranteed Pension

Deceased's Guaranteed Pension

I'm executor of my late father's estate. He had a pension guaranteed for 5 years so that, if he died within 5 years, his pension would continue until the expiry of 5 years.

The pension company has paid the outstanding amounts to me as if it were my own money and taxed it. HMRC has sent me a revised tax code to reflect my "new source of income"! The money should have been paid to me as executor of the estate.

I've spoken to the pension provider and they have said I need to ask HMRC to sort this out. HMRC tell me the provider needs to sort it out. 

Does anybody know how this should be resolved? Is there a procedure for the pension provider to reverse what they have done without getting HMRC input? Whose responsibility would it be to rectify this.

Thanks for any help.


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By jbayman
23rd Jan 2012 17:10



Normally speaking the outstanding annuity payments should have been commuted to a cash sum and paid across with the appropriate tax deduction (55% for death post 4/11).


Sounds to me like the insurance company needs to sort this. They are responsible for the tax deduction.

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