What Happens to a Moneybox Pension When Someone Dies?

Does a Moneybox Pension Require Probate?

In most cases, no. Moneybox's pension is held within a discretionary trust structure. The trustees can pay the pot directly to the nominated beneficiary without a Grant of Probate, because the funds fall outside the estate.

If there is no nomination and Moneybox cannot identify a suitable beneficiary, the pot may be paid to the estate. In that case, probate may be required before the money is distributed.

What Death Benefits Does Moneybox Pay?

The death benefit is the full value of the pension pot at the date of death — including all contributions (member, employer if applicable, and government tax relief) plus investment growth. Moneybox invests in a limited range of passive funds, so the pot value reflects the current market value of those holdings.

Moneybox pays the death benefit as a lump sum. Unlike some larger providers, Moneybox does not currently offer inherited drawdown — the beneficiary receives cash. If the beneficiary wants to keep the money invested in a pension, they would need to open their own pension account separately.

Moneybox does not offer a separate death-in-service benefit — the only benefit on death is the pension pot itself.

How to Claim Moneybox Pension Death Benefits

1. Contact Moneybox. Email help@moneyboxapp.com or use the in-app support to notify Moneybox of the death. You will need the deceased's email address or account details.
2. Provide a certified copy of the death certificate.
3. Moneybox will review the nomination. If a valid nomination of beneficiary is registered in the deceased's account, Moneybox will contact the nominated beneficiary.
4. Complete the claim process. Moneybox will guide you through the steps and request identification and bank details for payment.

Moneybox is a smaller, digital-first provider. If you experience difficulty contacting them or unreasonable delays, you can escalate to the Financial Ombudsman Service.

The Nomination Form: Why It Matters

Moneybox allows pension holders to register a nomination of beneficiary within the app. This tells the trustees who the member would like to receive the pension pot on their death.

The trustees consider the nomination carefully but retain discretion — this is what keeps the pot outside the estate for IHT purposes. In practice, Moneybox will almost always follow a valid nomination. Problems arise when the nomination is outdated or was never completed in the first place.

Moneybox users should check their nomination within the app. Given the app's younger demographic, many users may not have considered completing a nomination — this is an important step to take.

Tax on Moneybox Pension Death Benefits

• Death before age 75: The lump sum payout is normally tax-free for the beneficiary, subject to the available allowances.
• Death at age 75 or over: The lump sum is taxed as income for the recipient at their marginal rate (20%, 40%, or 45%).

Given Moneybox's younger user base, most deaths will occur well before age 75 — making the tax-free treatment the most relevant rule for most beneficiaries. For the latest guidance, see GOV.UK on tax on pension death benefits.

IHT and Moneybox Pensions From April 2027

Currently, Moneybox pension pots fall outside the estate and are not subject to inheritance tax. From 6 April 2027, proposed changes will bring unspent DC pension funds — including Moneybox pensions — within the scope of IHT.

While Moneybox users tend to have smaller pots than older, established pension holders, the principle applies to all. Read our guide to pensions and inheritance tax from April 2027 for the full picture.

If There Is No Nomination Form

If no nomination is registered, Moneybox trustees will use their discretion and typically seek out any surviving spouse or financially dependent person. If no suitable beneficiary is found, the pot may be paid to the estate, which becomes subject to the probate and estate administration process.

Related Guides

• Pensions and Inheritance Tax from April 2027
• Inheritance Tax Guide 2026/27
• Complete UK Probate Guide
• What to Do When Someone Dies
• Estate Administration Checklist
• Notifying Banks After a Death
• Applying for Probate
• Probate Threshold 2026/27
• Inheritance Tax Basics
• The 7-Year Gifting Rule