What to do if someone with an Utmost annuity or pension dies

For an Utmost annuity

If someone we are paying a regular income to (also known as an annuity, or income for life or a pension income) has died, then it’s really important that you let us know quickly.

This will allow us to stop payments that may otherwise need to be reclaimed, and to commence paying money due to the estate or to a surviving spouse, civil partner or other dependant, as soon as possible.

If there are further payments due then we’ll ask you to complete our Annuity Information Form – don’t worry, when we send you this, we’ll make it clear to you which sections we’ll need you to complete.

Here’s the full form for information – you can print this form and return it to us.

Download and print Annuity Information Form

For an Utmost pension

Benefit payable

Most Personal Pension Plans and Section 226 Pension Plans pay a lump sum benefit on death. However this is not always the case; some older pension arrangements where there may not pay a death benefit. If you’re not sure of the type of arrangement, then please contact us.

Who will we pay the benefit to?

This will usually depend on the type of pension, and the two most common types are shown below:

Section 226 pension where the benefit forms part of the estate on death

Individual pension plans which started before 1 July 1988 are generally Section 226 pension plans.

The benefit amount forms part of the estate of the deceased and must be distributed in accordance with the will, or to the next of kin if there isn’t a will.

Personal Pension Plan where the benefit is payable under discretionary trust

Personal Pension plans generally started from 1 July 1988 onwards.

The benefit amount will be paid under a Personal Pension Plan discretionary trust, which covers payment of the benefit on death.

As trustees Utmost Life and Pensions will need to consider any person or persons already nominated by the deceased (if such a nomination was made) to receive the payment on death, together with other details about the estate of the deceased, before we make payment. Utmost Life and Pensions as trustees will decide who to pay.

Will there be any tax due on the payment?

It’s possible that there may be tax due on the payment if the deceased exceeded the HMRC Lifetime Allowance limit. The limit applies across all the deceased pension pots and for the tax year 2018/2019 is £1,030,000.

What you need to do next

Here’s the full form for information – you can print this form and return it to us.

Download and print Pension Information form

What will happen next

Once we’ve received the form, then we’ll process your request, normally within two weeks:

  • If we can, then we’ll pay the claim and let you know when we’ve done this.
  • If we need any additional information we’ll be back in touch.