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The NHS Pension Scheme covers doctors, nurses, and other NHS staff in England and Wales. When a member dies, the scheme pays a lump sum on death and, in many cases, an ongoing adult dependant's pension. Whether a grant of probate is needed, and whether the lump sum counts for inheritance tax, both turn on who the scheme pays it to. Scotland has the separate NHS Scotland Pension Scheme, administered by the Scottish Public Pensions Agency, and Northern Ireland has the HSC Pension Scheme.
Usually not — but not for the reason often given. NHS Pensions is explicit in its Survivor's Guide that the NHS Pension Scheme is not a discretionary scheme. The lump sum on death is paid to the legal spouse, registered civil partner or qualifying scheme partner unless the member nominated someone else on the lump sum on death benefit nomination form (DB2). Where there is such a person or a valid nomination, no grant is needed to release it.
If there is no legal spouse, registered civil partner, qualifying scheme partner or nomination, the lump sum is paid to the member's estate. NHS Pensions will ask to see a Grant of Probate or Letters of Administration before paying a lump sum of £5,000 or more, so in that case you will need to apply for probate first.
The adult dependant's pension and any children's pension are different: NHS Pensions states that neither forms part of the member's estate, and neither can be redirected by a will.
The NHS Pension Scheme (covering the 1995, 2008, and 2015 sections) pays several types of death benefit:
HMRC rules require the lump sum to be paid within two years of the death first being notified to NHS Pensions in writing. After two years a tax charge of up to 45% applies, and NHS Pensions has no discretion to waive it.
A surviving spouse, registered civil partner, or qualifying scheme partner may be entitled to an ongoing pension. The rate depends on the section, and it is only a half in the oldest one: 50% of the member's pension in the 1995 Section, 37.5% in the 2008 Section and 33.75% in the 2015 Scheme. Because every member moved into the 2015 Scheme by 1 April 2022, most recent members have benefits in more than one section, and the two calculations are made separately and paid together. The pension is taxable as income for the recipient. Where the member's scheme membership extended to or beyond 1 April 2008 it is paid for life whatever the survivor does afterwards; where membership ended before 1 April 2008 it normally stops if the survivor remarries, forms a civil partnership or lives with someone as a partner, though it can be reinstated if withdrawal causes severe financial hardship.
Eligible children may also receive a children's pension. Where scheme membership extended to or beyond 1 April 2008, a child qualifies if they are under 23, or 23 or over and incapable of earning a living because of a permanent infirmity they had when the member died. The rate follows the section: 25% of the member's pension in the 1995 Section, 18.75% in the 2008 Section and 16.875% in the 2015 Scheme, with higher shared rates where there is more than one child.
The process for claiming NHS pension death benefits is managed by NHS Pensions (administered by NHS Business Services Authority). Here is what to do:
If you are unsure whether your loved one was a member of the NHS Pension Scheme, check any payslips, pension statements, or employment correspondence. You can also check with their employer or use the government's Pension Tracing Service.
The NHS Pension Scheme lets a member nominate someone else to receive the lump sum on death, using form DB2. It is not an expression of wishes that NHS Pensions weighs up: NHSBSA's own guidance is that a valid nomination determines who is paid, and that without one the money goes to the legal spouse, registered civil partner or qualifying scheme partner automatically. Members who are married or in a civil partnership only need to nominate if they want someone else to receive it.
What to check: if you are dealing with an NHS employee's estate, ask NHS Pensions whether a DB2 nomination is on file. An out-of-date nomination still takes effect, so a form naming a former partner will normally be followed.
The adult dependant's pension is separate from the DB2 nomination — it is paid to an eligible spouse, civil partner or qualifying scheme partner under the scheme rules. A qualifying scheme partner who was not married to the member does need a partner nomination (form PN1) or evidence that the eligibility conditions were met.
The tax treatment of NHS pension death benefits depends on the member's age at death:
NHS Pensions will notify recipients of the tax position when making payment. For current guidance on tax on a private pension you inherit, see GOV.UK.
It is worth separating two things that are often run together. NHS pension death benefits are not uniformly outside inheritance tax today. NHS Pensions' own guidance is that a lump sum on death is included in an inheritance tax assessment if it is paid to the estate, to a nominee or to a qualifying scheme partner, and is not included if it is paid to a spouse or registered civil partner — the ordinary spouse exemption. The adult dependant's pension and children's pensions do not form part of the estate at all.
The change announced for 6 April 2027 brings most unused pension funds and death benefits into the estate for inheritance tax. HMRC's policy paper of 26 November 2025 states that all death in service benefits payable from a registered pension scheme are excluded from that change — from discretionary and non-discretionary schemes alike — as are dependants' scheme pensions from a defined benefit arrangement. The exemptions for death benefits passing to a surviving spouse or civil partner, and to registered charities, are kept. From 6 April 2027 personal representatives are liable for reporting and paying any inheritance tax due on the funds and death benefits that are in scope. Read our guide to pension IHT changes from April 2027 for the latest position.
Our inheritance tax guide for 2026/27 covers the current rules in full.
If your loved one did not complete a DB2 nomination, NHS Pensions does not weigh up candidates — the scheme rules decide. The lump sum is paid to the legal spouse, registered civil partner or qualifying scheme partner.
If there is no spouse, civil partner, qualifying scheme partner or nomination, the lump sum is paid to the estate, at which point it becomes subject to the probate process and the terms of the will (or intestacy rules if there is no will). NHS Pensions asks to see a Grant of Probate or Letters of Administration before paying a lump sum of £5,000 or more into an estate.
If you are in this situation, contact NHS Pensions as soon as possible and explain the circumstances. They will guide you through what information they need.