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indy2005
Junior Member
458 Posts |
 Posted - 12 July 2008 : 13:23:57
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Hi,
In my SOA I detailed a lfe insurance policy which I have since bought back for £50. I didnt mention a death in service benefit at work which is linked to my pension and pays 6x my salary to my wife if I die while working for the company. The reason I didnt mention it was because when I asked HR if there was some kind of policy number, they said there wasnt - it was pension linked. I do pay for the benefot from my salary in addition to pension contributions.
In my face to face, when we talked about the life insurance policy he asked if I had any more and I briefly mentioned I had some sort of death in service benefit. It wasnt mentioned any more and it wasnt written down, nor was it questioned why it wasnt in my SOA. Saying that my examiner was being audited and came across as very nervous and obviously made a few mistakes (we agreed an IPA payment and later he came back in and said we would have to revisit the IPA as his boss neeed to review the IE).
Should I raise the issue of this death in service policy again to make it clear that I am not hiding any assets. I dont particularly want them sniffing around work any more than they are going to anyway, but nothing about it seems to have been documented.
Regards
i
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Edited by - indy2005 on 13 July 2008 09:23:21 |
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John
New Member
United Kingdom
73 Posts |
Posted - 13 July 2008 : 09:33:12
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Hi indy2005
I would not mention it any further.
a) you have already done so albeit verbally.
b) it has no value until your demise.
c) the moment you do "pass on" your debt "dies" with you.
Therefore the monies will never be yours, they will (not for a long while yet I hope) belong to your spouse in the event.
However, that obviously means if your spouse is BR too then if she were able to claim the monies (please see previous brackets) prior to her discharge she would be required to declare the fact.
Post BR, no problem. |
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indy2005
Junior Member
458 Posts |
Posted - 13 July 2008 : 20:47:51
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Hi,
Thanks. This is whay I cant understand why I had to buy back my life insurance policy for £50. If the debt dies with me, and the money goes to my wife who isnt BR...why have I just spent £50!?
Regards
i |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 13 July 2008 : 21:03:42
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Hi
Debts don't actually die with you as creditors can still pursue your estate for the debt if there is any value there.
i have been made aware of a case where an individual refused to pay his debts and actually died. an individual ( not a company ) creditor had no joy in pursuing the beneficiary for the debt so using a deceased persons order actually made the dead person bankrupt.
the estate was then passed to the OR who dealt with matters in the usual way. i understand that the OR interview was a little one sided!
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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indy2005
Junior Member
458 Posts |
Posted - 13 July 2008 : 22:00:23
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Its stories like that that make me wonder what on earth I have done. Then I realise that on the cusp of a recession, I am quite well positioned in that i am debt free! As long as I keep the house that is  |
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melanie_giles
Senior Member
1191 Posts |
Posted - 13 July 2008 : 22:05:19
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That's correct Paul - any outstanding debts remaining when someone dies are a first charge on that deceased persons estate and will have to be paid before any monies are passed on to beneficiaries.
If a person dies before being discharged from bankruptcy, the Trustee in office will continue to deal with the realisation of the estate, and if there are any life benefits which have not been specifically assigned to a third party, these monies will be firstly used to pay off the debts of the deceased person.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 14 July 2008 : 12:00:24
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Hi Melanie and Paul,
I agree. It may not seem fair to those left behind, but that's unfortunately the way it is!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Death in Service Benefit
