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Moneybox is a savings and investment app popular with younger UK savers, offering a Stocks & Shares ISA, Lifetime ISA, and a personal pension. The Moneybox pension is a defined contribution (DC) scheme — members build up a pension pot over time. When a Moneybox pension holder dies, the value of their pot can be paid to a nominated beneficiary or next of kin. These funds fall outside the estate and do not normally require probate.
In most cases, no. The decision over who receives the death benefit rests with the scheme administrator under the pension's rules, not with the executor and not with the will. Because the member had no absolute right to direct payment, the pot can be paid to a beneficiary without a grant of probate.
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.
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.
Under the pensions tax rules a beneficiary may be able to take the pot as a lump sum, keep it invested in beneficiary drawdown, or buy an annuity. Not every provider supports every option, and what is on offer changes; ask Moneybox which options apply here rather than assuming. A beneficiary can generally transfer an inherited pension to another provider.
A Moneybox pension is a personal pension, so there is no employer death-in-service cover attached to it. If the deceased was employed, check separately with their employer, which may run its own life cover.
Moneybox is an app-first provider with no branch network. If you cannot get an answer or the claim stalls, you can escalate to the Financial Ombudsman Service.
Moneybox allows pension holders to register a nomination of beneficiary within the app. It records who the member would like to receive the pot on their death.
The nomination is considered carefully but is not binding. That discretion is what currently keeps the pot outside the estate for inheritance tax — but only until 5 April 2027, as set out below. Problems arise when the nomination is out of date or was never completed at all.
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.
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 a private pension you inherit.
From 6 April 2027 most unused pension funds and death benefits come into the estate for inheritance tax. HMRC's policy paper of 26 November 2025 confirms the change applies "regardless of whether the pension scheme administrators or scheme trustees have discretion over the payment of any death benefits", so the discretion described above will no longer keep the fund outside the estate. Death in service benefits payable from a registered pension scheme are excluded, but an unspent money purchase pot is not one of those.
The spouse, civil partner and charity exemptions are kept, so a fund passing to a surviving spouse or civil partner remains exempt. Personal representatives, not scheme administrators, are liable for reporting and paying any inheritance tax due, and can direct a scheme to withhold 50% of the benefit for up to 15 months while that is settled.
Read our guide to pensions and inheritance tax from April 2027 for the full picture.
If no nomination is registered, Moneybox uses its discretion and will typically look for a surviving spouse or a 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.