What Happens to a Prudential Pension When Someone Dies?

Does a Prudential Pension Require Probate?

In most cases, no. Prudential pension funds are held in a discretionary trust, meaning they fall outside the estate. The fund can be paid directly to the nominated beneficiary without a Grant of Probate.

Note that some older Prudential products (such as personal pension plans taken out before the 1990s) may have different arrangements. Always check the specific policy terms. If the fund is paid to the estate, you may need to apply for probate before distribution.

What Death Benefits Does Prudential Pay?

The death benefit varies by product type:

Defined Contribution and Personal Pensions

The death benefit is the full fund value at the date of death. For with-profits pensions, the fund value may include a terminal bonus declared at that point. Prudential may offer beneficiaries a lump sum, inherited drawdown, or annuity.

Annuities in Payment

If the deceased was already receiving a Prudential annuity, the death benefit depends on the annuity terms. A joint annuity continues at a reduced rate for the surviving partner. A guarantee period (e.g., five years) means payments continue until the end of the guarantee, even after death. A single life annuity with no guarantee typically stops on death. Check the original annuity schedule for the specific terms.

How to Claim Prudential Pension Death Benefits

1. Contact Prudential's bereavement team. Call 0800 000 000 or visit pru.co.uk/bereavement. Have the policy number or the deceased's national insurance number ready.
2. Provide a certified copy of the death certificate.
3. Prudential will review the expression of wishes and contact the nominated beneficiary if a valid nomination is on file.
4. Complete the claim documentation and confirm how you wish to receive the benefit.

The Nomination Form: Why It Matters

Prudential pension holders are asked to complete an expression of wishes (nomination of beneficiary). The trustees consider this nomination carefully but retain discretion — this is what keeps the fund outside the estate for IHT purposes. In practice, Prudential will almost always pay to a valid, current nominee.

Many Prudential policyholders have had their policies for decades and may not have updated their nomination. If you are the bereaved family member, contact Prudential to find out whether a nomination is on file and whether it reflects the deceased's wishes at the time of death.

Tax on Prudential Pension Death Benefits

• Death before age 75: Lump sums and inherited drawdown payments are normally tax-free for the recipient.
• Death at age 75 or over: All payouts are taxed as income at the recipient's marginal rate.

See GOV.UK for the latest guidance on tax on pension death benefits.

IHT and Prudential Pensions From April 2027

Currently, Prudential pension funds fall outside the estate and are not subject to inheritance tax. From 6 April 2027, proposed changes will bring unspent pension funds within the scope of IHT. This is particularly relevant for Prudential with-profits policyholders who may have accumulated significant fund values over many years.

Read our full guide to pensions and inheritance tax from April 2027.

If There Is No Nomination Form

Without a nomination, Prudential trustees will exercise discretion, typically paying to the surviving spouse or civil partner. If no suitable beneficiary is found, the fund may be paid to the estate, making it 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