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Royal London is one of the UK's largest mutual life, pensions, and investment companies, offering personal pensions, workplace pensions, and self-invested personal pensions (SIPPs). When a Royal London pension member dies, their beneficiaries can claim the fund value. Because Royal London decides who receives it rather than the will doing so, the fund generally falls outside the estate and does not require probate.
In most cases, no. Royal London, not the executor, decides who receives the death benefit — it has discretion over the payment, guided by the member's nomination. Because the fund is not the member's to leave by will, it does not form part of the estate, and Royal London can pay the beneficiary without a Grant of Probate.
If there is no nomination and Royal London cannot identify an appropriate beneficiary, they may pay the fund to the estate. In that case, probate may be required before the funds can be distributed to beneficiaries.
Royal London offers several types of pension, each with slightly different death benefit options:
The death benefit is the full fund value at the date of death. Royal London may offer beneficiaries the option to receive this as:
Which options are available depends on the specific policy terms. Royal London will explain the available options when you contact them.
Royal London also offers SIPPs. For a deceased SIPP holder the same discretionary rules apply — the fund is paid to the nominated beneficiary outside the estate. See our guide to SIPP death benefits for more context.
Royal London asks all pension holders to complete a nomination of beneficiary form (expression of wishes). This tells Royal London who the member would like to receive the fund. Royal London considers the nomination when deciding who to pay, but retains discretion — it is not legally bound to follow it.
That discretion is the point: it is what keeps the fund outside the estate. In practice, Royal London almost always follows a valid, current nomination, and a nomination that was never updated after a marriage, divorce or bereavement is the usual source of difficulty.
Royal London will advise on the tax position at the point of payment. For the latest rules, see GOV.UK's guidance on tax on a private pension you inherit.
Currently, Royal London pension funds paid at Royal London's discretion fall outside the estate and are not liable to inheritance tax. From 6 April 2027, most unused pension funds and death benefits — including Royal London pensions and SIPPs — 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 makes personal representatives liable for reporting and paying the tax; they can direct the scheme administrator to withhold 50% of the taxable benefits for up to 15 months and settle the tax before the balance is released.
Read our detailed guide to pensions and inheritance tax from April 2027 and review the current inheritance tax rules for 2026/27.
If no nomination of beneficiary is on file, Royal London uses its discretion to identify the most suitable beneficiary. They will typically consider whether there is a surviving spouse, civil partner, or financially dependent person. If no suitable beneficiary is found, the fund may be paid to the estate and become subject to probate and estate administration.