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PRACTICE NOTES
When pension contributions are recoverable
This Practice Note considers two issues:
whether a bankrupt’s pension arrangement sits within the bankruptcy estate, and
if the arrangement is outside the bankruptcy, whether payments into it can be recouped for the estate’s benefit
It deals solely with occupational pension schemes and personal pension arrangements. State pensions and most statutory pension schemes do not comprise part of the bankrupt’s estate, meaning the sole route for a trustee in bankruptcy (trustee) to realise pension rights is via an income payments order.
Bankruptcies before 29 May 2000
This section applies to individuals made bankrupt following petitions presented before 29 May 2000. Contributions paid in respect of both personal pension schemes and occupational pension schemes are ordinarily recoverable by the bankrupt’s trustee, because a debtor’s contractual rights under such schemes are treated as choses in action falling within the broad
Restructuring & Insolvency
PRACTICE NOTES
The role of personal representatives
Applications for reasonable financial provision from an estate under the Inheritance (Provision for Family and Dependants) Act 1975 (I(PFD)A 1975) appear to be increasing. Consequently, it is more likely that personal representatives (PRs)—whether executors or administrators—will need to address such a claim during the administration of the estate. This can be challenging, as PRs may feel caught between opposing sides, namely the claimant and the beneficiaries taking under the Will or the intestacy rules. This Practice Note explores the position of PRs in relation to I(PFD)A 1975 claims. Although it is well understood that, when faced with an I(PFD)A 1975 claim, PRs should remain neutral, that approach raises practical queries, such as:
how PRs should respond to requests for information from someone threatening to bring an I(PFD)A 1975 claim
what PRs ought to do if
Private Client
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