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Prudential is a long-established UK pension and life insurance provider with many long-standing policyholders, offering personal pensions (including with-profits plans), annuities, and investment bonds. Its UK retail business now trades as part of M&G, and the old pru.co.uk customer pages redirect to M&G. When a Prudential pension holder dies, the fund value or death benefit can normally be paid to a nominated beneficiary without a grant of probate.
In most cases, no. On a modern personal pension the scheme administrator, not the executor, decides who receives the death benefit — it has discretion over the payment, guided by the member's expression of wishes. Because the money is not the member's to dispose of by will, it does not form part of the estate and can be paid to the 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.
The death benefit varies by product type:
The death benefit is the full fund value at the date of death. With-profits plans are the ones to be careful with: what a with-profits fund is worth on death, and whether any final or terminal bonus is added to it, depends on that plan's own terms. Prudential does not publish a single rule that covers them, so ask for the death benefit value in writing rather than working from the last statement. Beneficiaries may be offered a lump sum, inherited drawdown, or an annuity, depending on the plan.
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.
Prudential pension holders are asked to complete an expression of wishes (nomination of beneficiary). The provider takes it into account but retains discretion — that discretion is what keeps the fund out of the estate. In practice a valid, current nomination is almost always followed.
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.
See GOV.UK for the latest guidance on tax on a private pension you inherit.
Currently, Prudential pension funds paid at the provider's discretion fall outside the estate and are not subject to inheritance tax. From 6 April 2027, most unused pension funds and death benefits are brought into the estate for inheritance tax. The existing exemptions for death benefits passing to a surviving spouse or civil partner, and to registered charities, are kept, and death in service benefits payable from a registered pension scheme are excluded. HMRC's policy paper of 26 November 2025 puts the reporting and payment obligation on personal representatives, who can direct a scheme administrator to withhold 50% of the taxable benefits for up to 15 months and pay the tax to HMRC before the rest is released.
Read our full guide to pensions and inheritance tax from April 2027.
Without a nomination, Prudential exercises its discretion, typically paying 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.