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NOW: Pensions is a workplace pension provider used by employers across the UK, particularly in sectors such as retail, hospitality, and care. It is a defined contribution (DC) pension scheme. When a NOW: Pensions member dies, the value of their pension pot can be paid to a nominated beneficiary or eligible dependant. These funds sit outside the estate and do not normally require probate.
In most cases, no. NOW: Pensions is a master trust and its Trustee has a genuine discretion over who receives the pot, so it can pay a beneficiary directly without a grant of probate. That is why the pot currently falls outside the estate — a position that changes on 6 April 2027, as set out below.
If there is no nomination and NOW: Pensions cannot identify a suitable beneficiary, the pot may be paid to the estate. In that case, probate may be required before the funds are distributed.
NOW: Pensions is a defined contribution scheme, so the death benefit is the full value of the member's pension pot at the date of death. This includes all contributions (employee, employer, and government tax relief) plus investment returns. The amount will vary depending on how long the member was enrolled and how much was contributed.
It is a defined contribution scheme, so there is no survivor's pension of the kind a final salary scheme pays. Some employers also provide a separate death-in-service benefit — check with the employer's HR team if you think this may apply.
NOW: Pensions flags two timing points. If the payment is not made within two years there are tax consequences, and six years after the death is the long stop for paying the money out of the account. If you are experiencing delays or cannot get an answer, you can escalate to the Pensions Ombudsman if necessary.
NOW: Pensions members can register a nomination of beneficiary through their online member account. It tells the Trustee who the member would like to receive the pot, and the bereavement guide says the Trustee will "usually take into account any instructions the person left about who to pay the money to" — but the Trustee "has the final say over who gets this money".
If no nomination is registered, the Trustee still decides, assessing family circumstances and dependants. That takes longer, and may end in the pot being paid to the estate if no suitable beneficiary is identified.
See GOV.UK for the latest rules 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, and a defined contribution pot like this one is squarely within it. HMRC's policy paper of 26 November 2025 confirms it applies "regardless of whether the pension scheme administrators or scheme trustees have discretion over the payment of any death benefits". NOW: Pensions says the same in its own bereavement guide.
The spouse, civil partner and charity exemptions are kept. 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 full guide to pensions and inheritance tax from April 2027 and understand the inheritance tax basics before that date.
Without a nomination, the Trustee still decides. It may pay a surviving spouse, civil partner or financially dependent person. If no suitable beneficiary is found, the pot may be paid to the estate and become subject to the probate process.