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.
Contact each pension provider directly—they don't go through probate. Use Pension Tracing Service to find lost pensions. Defined contribution pots paid tax-free if under 75 (claim within 2 years), taxed at beneficiary's rate if over 75. Defined benefit schemes provide spouse/dependent pensions. Beneficiaries determined by provider discretion or Expression of Wish forms, not wills.
Deceased pension pots can be worth tens or even hundreds of thousands of pounds, yet many families don't know these pensions exist or how to claim them. Pensions don't automatically go through probate - each provider has its own claim process, beneficiary rules, and tax treatment.
This guide explains how to find all pensions the deceased held, understand what benefits are available, complete the claim process for each provider, determine who receives benefits, and navigate the tax implications.
Most modern workplace pensions and all personal pensions/SIPPs. Built from contributions that are invested to grow.
Typical death benefits:
Examples: Workplace pensions from private employers, personal pensions, SIPPs, stakeholder pensions, NEST, Scottish Widows, Aviva pensions
Promise to pay pension based on salary and years of service. Mostly public sector and older private sector schemes.
Typical death benefits:
Examples: NHS Pension, Teachers' Pension, Civil Service Pension, Local Government Pension (LGPS), many older corporate final salary schemes
💡 Key Difference:
Defined contribution: You inherit the actual pot value (money in the account). Defined benefit: You inherit a promise to pay based on scheme rules (lump sum + ongoing pension). Defined benefit often more valuable if member worked there many years.
Many people have multiple pension pots they've forgotten about. Average UK worker changes jobs 11 times - potentially 11 different pensions.
Government-run service to find lost pensions: www.gov.uk/find-pension-contact-details
This service finds pensions you didn't know existed. Always use it - you may discover significant pension pots.
Write to HR/payroll department of every employer deceased worked for (if known):
If you have suspicions but no evidence, contact major providers directly:
Critical: Pensions don't follow your will. What happens instead depends on what kind of scheme it is, and the two answers are genuinely different.
The nomination is not always just a wish
In a trust-based scheme — most private-sector occupational schemes, and personal pensions and SIPPs written under trust — the trustees or provider generally hold a discretion over who receives the death benefit, and the nomination form is an expression of wish. That discretion is what keeps the benefit outside the estate.
In the statutory public service schemes — NHS, Teachers', Police, Armed Forces, Civil Service — the death benefit is paid under scheme regulations made by Parliament, not under a discretionary trust. Schedule 14 paragraph 9 of the NHS Pension Scheme Regulations 2015 is the pattern: the lump sum must be paid to the member's personal representatives, or, where the member has given written notice nominating one or more individuals or a body, to that nominee. The scheme manager's discretion is narrow — it bites where the nomination has been revoked, the nominee has died, or payment is not reasonably practicable. There is no general power to look at the family's circumstances and pay someone else. So if the scheme is a public service one, do not assume the nomination can be set aside, and do not assume the administrator is choosing.
For a trust-based scheme, the decision generally turns on:
Most important factor. Deceased should have completed form nominating who receives death benefits.
Check if deceased completed nomination form. Contact provider to request copy of nomination on file.
Each scheme has rules about who can receive benefits:
If no nomination or unclear situation, trustees decide based on:
Trustees aim to pay the people the deceased would have wanted to support, and in a trust-based scheme they can depart from an out-of-date nomination — a divorce never reflected on the form, for example. That power does not exist in the same way in a statutory public service scheme, where a valid nomination binds the scheme.
⚠️ What If Paid to Estate?
If trustees can't find suitable beneficiaries or scheme rules require it, death benefits paid to estate:
Providers try to avoid paying to estate where possible - better for beneficiaries.
Contact pension provider's bereavement team (contact details on statement or website). This is part of the broader death notification process—see our guide on who to notify after a death for other organisations to contact:
Timing: Do this ASAP, especially if pension in payment - stops overpayments you'd have to return.
The provider then sends:
Typical information required (varies by provider):
If claiming as spouse/partner:
If claiming as nominated beneficiary:
If benefits going to estate:
Trustees review claim and decide who receives benefits:
If multiple claimants, trustees may split benefits between them or choose one. Their decision is usually final (can appeal to Pension Ombudsman if unreasonable).
Lump sum payments: paid directly to the beneficiary's bank account once the claim is approved. No official body publishes how long that takes. It can be taken all at once or moved into a drawdown pension.
Spouse/dependent pensions: Start within 1-3 months, paid monthly. Usually backdated to date of death. Taxed via PAYE like salary. Continue for beneficiary's lifetime (unless remarry if scheme rules say pension stops).
Estate payments: Paid to estate bank account once probate granted. Then distributed to beneficiaries per will.
| Death Age | Defined Contribution Lump Sum | Defined Benefit Lump Sum | Spouse/Dependent Pension |
|---|---|---|---|
| Under 75 | Tax-free if paid within 2 years of death | Tax-free (most schemes) | Tax-free income for beneficiary |
| Over 75 | Taxed at beneficiary's marginal income tax rate (20/40/45%) | Usually taxed at 45% (but check scheme rules) | Taxed as income via PAYE (20/40/45% depending on total income) |
Key Tax Points:
Tax Planning Opportunities:
Problem: Pension kept paying after death
Solution: Notify provider immediately. Return overpayments promptly. Provider usually requests repayment from estate or deducts from death benefits. Don't spend money that isn't yours.
Problem: Can't find evidence deceased had pension
Solution: Use Pension Tracing Service. Contact all previous employers. Check bank statements for contributions or income. Don't give up - lost pensions are common and can be very valuable.
Problem: Nomination form very out of date (ex-spouse named)
Solution: Trustees have discretion to override outdated nomination. Provide evidence of current circumstances (divorce certificate, current family situation). Trustees usually pay to current spouse/dependents despite old form, but not guaranteed.
Problem: Provider unreasonably refusing or delaying claim
Solution: Make formal complaint to provider (internal disputes procedure). If not resolved within 8 weeks or you're unhappy with response, complain to Pension Ombudsman (free service, www.pensions-ombudsman.org.uk). Ombudsman can order provider to pay plus compensation for distress.
Problem: Multiple people claiming same benefits
Solution: Trustees decide based on evidence. All claimants submit evidence of dependency/relationship. Trustees may split between multiple people or choose one. Their decision is final unless unreasonable (can appeal to Ombudsman). Be honest and provide strong evidence.