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Make a deceased claim - Questions and Answers
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Who can payment be made to?
For most policy types, except personal pensions, free-standing additional voluntary contribution policies and trust based schemes, we will normally make payment to the Deceased’s Legal Personal Representative. This may be the Next of Kin, the person named as Executor in the Deceased's Will, or the Executor or Administrator of the Deceased’s Estate where a Grant of Representation has been obtained.
Under some pension arrangements, such as Personal Pensions containing Non-Protected Rights funds, payment of the death benefits are made at the scheme administrator’s discretion. So, as scheme administrator, we may pay another person, or persons. We will consider all relevant information received before we exercise our discretion and make payment.
Who can apply for a grant of representation?
This depends on whether there is a valid Will. If there is, the Executors named in the Will would normally apply for a Grant of Probate, if they are able to. If no Executors are named or the Executors are unable or unwilling to act as such, the Next of Kin would apply for Letters of Administration with Will. Where no Will exists, the Next of Kin would apply for Letters of Administration.
The list below, often called the ‘Chain of Succession’, defines the priority order of the Next of Kin, and determines the order in which someone can apply for Letters of Administration:
- Spouse / Registered Civil Partner
- Children
- Parents
- Brothers and sisters
- Grandparents
- Other Blood Relatives
- The State
We normally expect a Grant of Representation to be obtained. However, where one is not being obtained, often because the value of the Estate is below a certain value, we will treat the Next of Kin (as determined above) as the person entitled to make the claim.
If the Policy Holder died before the Life Assured, and had not left a Will, we will treat the Policy Holder’s Next of Kin (as determined above) as the person entitled to claim - assuming ownership of the policy had not passed to the Life Assured.
What do you mean by multiple claimants?
Multiple claimants occur when more than one person is claiming the money from the policy or policies. For example, this could be where there is more than one child entitled to claim as Next of Kin.
There is not enough room on the claim form to capture all claimant information - what should I do?
Please use Section H of the form to capture the information. Note: ALL claimants must sign the original Claim Form.
If there are several people claiming as Next of Kin, and they all have a valid claim, we will need a letter signed by all the claimants that gives us authority to make payment, and advises us how they wish payment to be made. For example, payment could be made to one claimant, or could be split across several claimants.
Please note that it is important that each next of kin signs the Claim Form or separate letter. By signing the Claim Form or separate letter, each next of kin will confirm that they are happy with this instruction.
There is more than one executor/administrator on the grant of representation – who will payment be made to?
Payment will usually be made to one of the Executors/Administrators, whose bank details should be entered on the Claim Form, as authorised by all Executors/Administrators. This Executor/Administrator must then liaise with the others, to ensure the amounts paid are appropriately dealt with.
Please note that it is important that each Executor/Administrator signs the Claim Form. By signing the Claim Form, each of the Executors/Administrators will confirm they are happy with this instruction.
If there is more than one claimant in the chain of succession e.g. Two children, who would payment be made to?
We would usually make payment to one of the claimants, whose bank details should be entered on the Claim Form. This claimant can then liaise with the others, to ensure the amounts paid are appropriately dealt with. By signing the Claim Form, each claimant will confirm they are happy with this.
However, we are able to split the payment between more than one Claimant. Please give full details of your request at Section H of the claim form.
Please note that it is important that each claimant signs the Claim Form. By signing the Claim Form, each claimant will confirm they are happy with this instruction.
What powers does the state have?
The State is usually legally entitled to the monies due if the policy was self proposed by the Deceased, they did not leave a Will, there are no surviving relatives and the payment is not subject to our discretion. The State will ensure the Deceased receives a basic dignified funeral.
Where do I get a death certificate from?
A death certificate is obtained from the Registrar of Births, Deaths and Marriages for the locality where the death occurred. The address and phone number is in the local telephone directory or can be obtained from www.bt.com or any other directory service provider. It is also available, alongside other useful information about registering deaths, from the website of the General Register Office.
Do I have to send original documents?
We can accept a photocopy, or certified copy, of a Will. We can only accept original birth, death, marriage and registered civil partnership certificates and an original or sealed copy of a Grant of Representation.
Why do you require the original documentation (where stated)?
In accordance with the Office of Public Sector Information guidance, to ensure we do not cause you to infringe Crown Copyright, we must request original birth, death, marriage and registered civil partnership certificates.
I sent you a photocopy of the will. Will you return this to me?
Yes, we can do this if you specifically request us to do so.
When is a copy of the will required?
If a Will has been left a copy is required if:
- no Grant of Representation is being obtained,
- a life policy was self proposed,
- the Proposer of the life policy has already passed away and the ownership has transferred to the Deceased
- where we, as scheme administrator of a pension policy, have to exercise our discretion on payment.
Why must a lump sum payment be made within two years of us becoming aware of the death?
Changes in tax rules mean that any lump sum payment due, as a result of death, has to be made within two years of the pension scheme administrator becoming aware of the death.
If this does not occur then:
- the lump sum must be used to provide a dependant’s pension; or
- if there is no Dependant then the lump sum may suffer tax charges, or may be forfeited.
Under HM Revenue and Customs (HMRC) regulations, payment of a lump sum death claim must be completed within two years of the pension scheme administrator becoming aware of the member’s death. If we are unable to make payment by the deadline, any lump sum payment we do make would be deemed an “unauthorised payment” under current tax law.
Unauthorised lump sum payments are subject to tax charges of up to 70%. For example, if the value of a lump sum death claim was £10,000, but was classed as an unauthorised payment, we may be able to pay only £3,000 to a beneficiary, with the remaining £7,000 being passed in tax to HMRC. In some circumstances, we may not be permitted to pay any lump sum.
Who can I speak to about the claim?
If you need help with your claim, please call us on 0845 880 0088 between 9.00 and 18.00 and we will help as much as we can.
What do I do if I don’t know whether the policy has a value?
If you don’t know whether the policy has a value, please write to us enclosing the original death certificate and we will investigate for you.
How long will it take for the claim to be paid?
Once we have received everything we need and we agree to pay the claim most claims are paid within ten working days.
What do I need to do about premium arrears or overpayments on the policy?
Wherever possible, we will adjust the value of your claim to allow for any premium arrears or overpayments. If we are unable to take this approach with any policy you are claiming against, we will let you know.
I think the policy was used as security for a mortgage - how will this affect the claim?
For Life policies, we will make payment of the claim to the mortgage lender to pay off the mortgage. If there is any amount left over, the lender will pay the person or persons legally entitled to receive the payment. If the policy is assigned or deposited with a bank, we will make payment to them.
For Pension policies, if a bank had noted an interest, we will notify them that a claim has been paid, but will not pay them direct.
If an assignment has been made to a bank, our legal team would need to look at the deed before a decision can be made.
Where do I get a grant of representation / confirmation from?
You can get a Grant from your local Probate Registry of the High Court in England, Wales and Northern Ireland, or the Confirmation from Sheriff’s Court in Scotland.
The address and telephone number for the Probate Registry or Sherriff’s Court is in your local telephone directory. If you have internet access, you can also find those details at www.bt.com or other directory service providers.
More information, including how to apply for a Grant, is available from the Probate Office website. Details are in the Useful Contacts page.
The life assured had given someone a ‘power of attorney’. Is that person legally entitled to the claim proceeds?
No, the power of attorney ends when the Life Assured dies.
The deceased died outside of the UK. What type of death certificate do you require?
We will need to see the original death certificate issued in the country where the Deceased died. If this certificate is not written in English, we will also need to see an English translation. If the country where the Deceased died will only issue a photocopy of the death certificate, we will require the photocopy to be translated into English and certified by a solicitor or Notary Public in the UK.
It is important that the Cause of Death is written on the certificate and the translation. If it is not, then you need to tell us what the cause of death was and provide evidence of this where it is available.
The deceased died outside of the UK. Who pays for the translation costs involved?
The claimants must meet the costs of translating, into English, any document we need to be able to settle their claim.
Can you accept an interim death certificate?
If you currently hold an interim death certificate, please send this to us so that we can start to process the claim. Please also let us know details surrounding the circumstances of the death.
However, we will only be able to use this to make any payment due where the claim is payable to the estate of the deceased and a grant of probate or letters of administration has been obtained.
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