What Happens to a Zurich Pension When Someone Dies?

What happens to a Zurich pension when someone dies?

1Zurich pension death benefits bypass probate — the fund is paid at the trustees' discretion to the nominated beneficiary
2As a defined contribution provider, the full fund value is paid out; options typically include lump sum or inherited drawdown
3The expression of wishes registered with Zurich is the key document — trustees have discretion but usually follow a valid nomination
4If the member died before age 75, payouts are normally tax-free; if after 75, income tax is payable at the recipient's marginal rate
5From April 2027, unspent Zurich pension funds will count towards the estate for inheritance tax

Zurich is an international insurance group with a significant presence in the UK pension market, providing personal pensions, workplace pensions, and SIPPs. When a Zurich pension holder dies, the fund value can be paid to a nominated beneficiary or eligible dependant. These funds fall outside the estate and do not normally require probate.

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Does a Zurich Pension Require Probate?

In most cases, no. Zurich pension funds are held in a discretionary trust, so they fall outside the deceased's estate. Zurich can pay the death benefit directly to the nominated beneficiary without a Grant of Probate.

If there is no nomination and no suitable beneficiary, the fund may be paid to the estate, potentially triggering the need for probate.

What Death Benefits Does Zurich Pay?

The death benefit for defined contribution pensions and SIPPs is the full fund value at the date of death. Zurich typically offers beneficiaries these options:

Lump sum — paid directly to the nominated beneficiary
Inherited drawdown — fund transferred to a pension in the beneficiary's name
Annuity — fund used to provide guaranteed income

Some Zurich pension policies (particularly older group pension schemes) may also include a death-in-service benefit. Check the specific policy documents or ask the HR department of the employer.

How to Claim Zurich Pension Death Benefits

Contact Zurich's bereavement team. Call 0800 068 7777 or visit zurich.co.uk/bereavement. Have the plan number or the deceased's national insurance number ready.
Provide a certified copy of the death certificate.
Zurich will review the expression of wishes and contact the nominated beneficiary if a valid nomination is on file.
Complete the claim forms and select how you wish to receive the benefit.

The Nomination Form: Why It Matters

Zurich pension holders should complete an expression of wishes form. This tells Zurich's trustees who should receive the fund. The trustees consider the nomination carefully but are not legally bound by it — this discretionary structure keeps the fund outside the estate for IHT purposes. In practice, Zurich almost always follows a valid, current nomination.

Members should update their expression of wishes after any major life event such as marriage, the birth of a child, or separation.

Tax on Zurich 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 Zurich Pensions From April 2027

Currently, Zurich pension funds fall outside the estate and are not liable to inheritance tax. From 6 April 2027, proposed changes will bring unspent pension funds within the scope of IHT.

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

If There Is No Nomination Form

Without a nomination, Zurich trustees will use discretion and typically pay 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 process.

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