Q. Years ago, my ex-husband and I made a few investments together – some stocks and shares, some pension policies, and a life policy in our joint names. We have since separated, but never took any steps to set anything in stone. As our financial situation changed, some of the pensions and some of the policies were paid, others were not. We get on fine, but he is now quite unwell and wants to make sure there are funds there to take care of him should anything happen, and that there is some monies available for his new partner. I have no particular issue with that, but am wondering what steps I can take?
Dear Reader,
The first thing you should note is that every pension and insurance policy is different, and the terms of the same can vary from person to person and company to company.
If you are jointly named on any pension or policy, either of you should be able to make enquiries as the owner. This would confirm whether the policy simply ceased when payments were stopped, or whether there is some value still left in it. Some policies provide that payment is to be made up to a certain point, following which the policy will remain ‘live’.
Mostly, Pension policies retain their value (although – again – you should check with your providers).
If any policy has lapsed due to non-payment, you should enquire as to whether the necessary notification was sent to you and your husband. If no such notification was sent, there is scope for the matter to be brought to the Financial Services Ombudsman.
If there are funds available, your next step would again depend on how the policy is held. Often there is a ‘nomination’ on the policy, and, on your partner’s death, the funds would pass to the person nominated. Of course, you can try and decide what benefit you might receive given that it is likely that you contributed to the pension or policy premium as they accrued.
You and your ex-husband should also be very careful with regard to payment of tax. Although you have been living apart for some time, you are still regarded as spouses in the eyes of the law. You are entitled to a share of his estate, and he is entitled to a share of yours. His new partner is treated, for the purposes of Capital Acquisitions Tax, as a stranger. Obviously, if there are any properties held by either or both of you, there may well be steps that need to be taken now.
You and your ex-husband should immediately consult with your solicitors, accountants or financial advisors in this regard.
