Welcome to the forum gail. My condolences for your loss.

If an estate is created, for example via the pension, the trustee is likely to require that the funds are paid into the trust deed.

They'll pay back what they can of the debt using such funds.

The remaining debt will not be passed onto family members.

Sorry for your loss Gail.

Normally work pensions have named beneficiaries detailing how the proceeds are to be split in the event of the employee passing away.

Not to get too complicated but any trustee under an insolvency process only has a right over the estate if the debtor themselves would have benefited
It is therefore feasible that the pension may not form part of the trust deed as it has created a type of trust with beneficiaries, but this will depend on several factors.

If this happened in one of our cases, I would pass it to a solicitor for advice.

P

Hi gail,

Sorry to hear the awful news and for your loss.

The best thing to do is reach out to the Trustee dealing with the Trust Deed to notify them of the situation and they can start working with you to get to the bottom of things.

As Paul has advised the pension could be allocated to specific beneficiaries and therefore may not be something that would be ingathered into the Trust Deed. Without knowing the full details it’s hard to be more specific.

In relation to the debts, these would not pass onto anyone else. If the estate of your late sister does not have any assets then these debts are written off.