Farra is a death administration assistant for UK families. Get step-by-step guidance for registering a death, applying for probate, notifying banks, and managing bereavement admin. From essential documents to practical checklists, Farra simplifies estate paperwork and funeral-related tasks so you can focus on what matters.
Annuities are insurance products that provide guaranteed income for life. What happens when the annuitant dies depends entirely on the type of annuity and its terms. The range runs from nothing (single life, no guarantee) to significant sums (value-protected or joint life products). Executors must understand the specific product to ensure any death benefits are properly claimed.
The simplest and historically most common type. The annuity pays income for as long as the annuitant lives — and stops completely on death. Nothing is paid to the estate, the spouse, or any other beneficiary.
This type offers the highest income because there is no residual value. The annuity provider retains any "unspent" capital if the annuitant dies shortly after purchase.
The executor should notify the annuity provider of the death so that payments are stopped. There is nothing further to claim.
A guaranteed period (also called value protection for a fixed term) means the annuity continues to pay for a minimum period — typically 5 or 10 years from the date of purchase — regardless of whether the annuitant is alive.
If the annuitant dies within the guarantee period:
The executor must notify the annuity provider and request the remaining guaranteed benefits. These form part of the estate (if paid to the estate) or pass outside the estate (if paid directly to a named beneficiary).
A joint-life (or joint and survivor) annuity continues to pay after the death of the first annuitant. The survivor receives payments — typically at a reduced rate compared to the original income.
Common survivor rates are:
Not sure if you need probate?
1 in 3 applications are sent back. In under 2 minutes, we'll tell you whether you need it and what to do next.
On the death of the first annuitant, the executor should notify the provider. The surviving spouse or partner will then receive the reduced income directly — it does not pass through the estate (it is a personal benefit of the survivor).
On the death of the second annuitant, the annuity ends completely (unless there is also a guarantee period provision).
A value-protected (capital-protected) annuity returns to the estate any of the original purchase price that has not yet been "used up" by payments made. The calculation is:
Remaining capital = Original purchase price − Total payments received in the annuitant's lifetime
This remaining capital is paid as a lump sum to the estate on the annuitant's death. It is subject to income tax (at the recipient's marginal rate) if paid to an individual beneficiary, or 45% tax if paid to the estate and certain conditions are not met.
Value-protected annuities typically offer lower income than unprotected annuities because the provider retains less risk.
Annuity death benefits that are paid directly to named beneficiaries (not to the estate) are generally outside the estate for IHT. This applies to joint-life continuing payments and nomination-based guaranteed period payments.
Benefits paid to the estate (because no beneficiary was named or the policy requires payment to the estate) do form part of the taxable estate for IHT. For the full IHT context, see our inheritance tax UK 2026–27 guide.
For the general estate administration process, see the estate administration checklist, complete UK probate guide 2026, and applying for probate guide. For pension and retirement income context, see our frozen deferred pension guide and overpaid pension guide. For collecting estate assets, see our collecting assets after probate guide. For the IHT400, see our IHT400 guide. For executor first steps, see our executor first steps guide. For distributing the residuary estate, see our distributing the residuary estate guide. Farra can help — get started here.
1 in 3 probate applications are sent back.
Answer 5 questions in under 2 minutes. We'll tell you whether you need probate, which route to take, and the mistake most people make at this stage.
Free to check · 2 minutes · No account needed · £179 for your full probate pack
Related guides