How pension death benefits work, nomination forms, DC vs DB pensions, current tax rules, and the confirmed pension IHT reporting changes from April 2027.
This guide is part of ProbateHelp's Estate Assets guide cluster.
Yes. Each pension scheme is separate and must be contacted individually. Check paperwork, payslips, bank statements, old employers, and emails for provider names. The GOV.UK Pension Tracing Service can help find pension contact details, but it will not confirm whether a pension exists or tell you its value.
It depends on the scheme rules and any nomination form. Many defined contribution schemes can pay nominated partners, but some defined benefit schemes restrict survivor pensions to spouses, civil partners, and dependants. An unmarried partner should contact the scheme quickly and provide evidence of the relationship and financial dependency if requested.
The remaining drawdown pot can usually be paid to nominated beneficiaries as a lump sum or kept in beneficiary drawdown. If the pension holder died before age 75, relevant lump sums are usually income-tax free if the timing rules and available lump sum and death benefit allowance are met; beneficiary drawdown has separate rules. If they died aged 75 or over, withdrawals are normally taxed as the beneficiary's income.
For a death before 6 April 2027, most discretionary pensions do not pass under the will and are not included in the probate estate. Ask each provider whether the benefit is discretionary and whether any payment is being made to the estate. For a death on or after 6 April 2027, most unused pension funds and death benefits enter the separate IHT calculation even where they do not pass under the will, so use the new pension-IHT reporting process.
For relevant lump sums, payment within the applicable two-year period can affect the Income Tax treatment. For unused uncrystallised funds designated for beneficiary drawdown, designation within two years is the separate test. The clock starts when the scheme administrator first knew, or could reasonably have been expected to know, of the death. Ask the scheme which payment or designation deadline applies; the two-year period can begin before the provider is formally notified.