Do you need probate for a pension?
Almost never. Most pensions are paid outside the estate to the people the scheme chooses, guided by the member's nomination, on nothing more than a death certificate and proof of identity.
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The short answer
- Workplace and personal pensions are normally paid outside the estate. The scheme's trustees or provider decide who receives the death benefits, guided by the member's expression of wish, and pay on the death certificate. No grant.
- Death-in-service lump sums work the same way, through the employer's scheme.
- An annuity stops at death or continues to a named dependant; nothing passes to the estate unless there was a guarantee period.
- The State Pension is handled by Tell Us Once. Any arrears are small and paid to the estate without a grant.
- The exceptions: old-style schemes that pay lump sums to the estate, and any pension sum a scheme decides to pay to the personal representatives. Those follow the ordinary limits.
Why pensions bypass the estate
Nearly every workplace pension and personal pension in the UK is written under a discretionary trust. When the member dies, the death benefits (the remaining fund in a defined contribution scheme, or a lump sum and dependant's pension in a defined benefit scheme) do not belong to the member's estate. They belong to the scheme, and the trustees or the provider decide who receives them from a class of potential beneficiaries: spouse, partner, children, dependants, anyone named in the member's nomination.
The member's expression of wish (also called a nomination or beneficiary form) is the main guide, and trustees follow it in the overwhelming majority of cases. But because the decision is formally theirs, the money never passes through the will or the intestacy rules, and no grant is needed for the scheme to pay it. The scheme will ask for the death certificate, the claimant's identity and bank details, and sometimes evidence of the relationship.
This structure is also why pension death benefits have historically been free of inheritance tax. That is changing: from 6 April 2027, unused pension funds and most death benefits are due to be brought within the scope of inheritance tax under legislation announced in the 2024 Autumn Budget. For deaths before then the position above applies; for later deaths, the scheme will still pay without a grant, but the value may need to be reported.
Pension by pension
- Defined contribution (most modern workplace pensions, SIPPs, personal pensions, NEST). The remaining pot is paid as a lump sum or kept as a beneficiary's drawdown pension, at the provider's discretion guided by the nomination. No grant. Contact the provider with the death certificate.
- Defined benefit (final salary and career average, including NHS, teachers', civil service, local government). A survivor's pension to a spouse, civil partner or qualifying partner, children's pensions, and usually a lump sum if the member died in service or within a guarantee period after retiring. Paid by the scheme on the death certificate and proof of the relationship. No grant.
- Death in service. A lump sum of typically two to four times salary, paid through a discretionary trust run by the employer's scheme or insurer. No grant. Ask the employer's HR or pensions team.
- Annuities. A single-life annuity stops. A joint-life annuity continues to the named second life at the reduced rate. Value protection or a guarantee period may produce a lump sum or continuing payments, which go to the nominated person or, occasionally, to the estate. Ask the insurer what the contract provides.
- State Pension. Stops at death. Tell Us Once notifies the Pension Service when you register the death. Any pension owed up to the date of death is paid to the person dealing with the estate on request, without a grant. A surviving spouse may be entitled to inherit part of an additional State Pension or a protected payment, and may qualify for Bereavement Support Payment.
- Pension already in payment to the deceased. Payments made after the date of death are recovered by the scheme. Do not spend them.
When a pension does go through the estate
Some older schemes, retirement annuity contracts and a few section 32 buy-out policies were written so that the death benefit is paid to the member's estate rather than at the trustees' discretion. Where a scheme decides to pay the personal representatives (for instance because there is no surviving spouse or dependant and no nomination), the sum becomes an estate asset. The provider then applies its own limit like a bank would: a modest sum on the death certificate, a large one against the grant.
If a scheme tells you it will pay "to the estate" or "to the executors", ask what its limit is before assuming a grant is needed.
What to do
- Find every pension. Payslips, annual statements, and the free Pension Tracing Service for lost workplace schemes. Old employers' schemes are the most often overlooked asset after a death.
- Notify each scheme with the death certificate. Ask what death benefits are payable, to whom, and what they need.
- Send the nomination if you have it. Trustees can usually find their own copy, but it speeds things up.
- Tell the personal representative the values even though the benefits bypass the estate. They may be reportable, and from April 2027 they may be taxable.
Common questions
Do you need a grant of probate to claim a pension?
Almost never. Workplace and personal pensions are paid at the discretion of the scheme's trustees or provider, outside the estate, on the death certificate and proof of the claimant's identity. The member's nomination guides who receives it. Only where a scheme pays the estate itself, which is unusual, do the ordinary probate limits apply.
Do you need probate for death in service?
No. Death-in-service benefits are paid through a discretionary trust by the employer's scheme or its insurer, to beneficiaries chosen by the trustees with reference to the member's nomination. They are not part of the estate and no grant is required. Contact the employer's pensions or HR team.
Does a private pension form part of the estate?
Generally not. A personal pension or SIPP is held under a discretionary trust and the remaining fund is paid to beneficiaries chosen by the provider, not under the will. It is outside the estate for probate purposes. From 6 April 2027 unused pension funds are due to come within inheritance tax, which will change the tax position but not the need for a grant.
What happens to the State Pension when someone dies?
It stops. The Pension Service is notified through Tell Us Once when the death is registered. Any pension owed up to the date of death is paid to the person dealing with the estate without a grant. A surviving spouse or civil partner may inherit part of an additional State Pension or protected payment, and may be able to claim Bereavement Support Payment.
Do I need probate for my husband's private pension?
No. Contact the provider with the death certificate. If your husband nominated you, the provider will almost certainly pay the death benefits to you, either as a lump sum or as a pension in your name. The money does not pass through his estate and no grant is involved.
Does an annuity need probate?
No. A single-life annuity simply ends at death. A joint-life annuity continues to the named second person. If the annuity had a guarantee period or value protection, the remaining payments or lump sum go to the nominated beneficiary or, in some contracts, to the estate, where the insurer's own limit then applies.
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Important
Solace is not a firm of solicitors and does not provide legal, tax or financial advice. We are an estate administration service and we are not regulated by the Solicitors Regulation Authority, the Financial Conduct Authority or any equivalent body. Nothing in this guide constitutes legal, tax or financial advice, and no solicitor–client relationship is created by reading it.
This article is general information only. It reflects the position in England and Wales at the date shown above; the law and the figures change, and Scotland and Northern Ireland differ in important respects. It may not apply to your circumstances. Whether a particular estate needs a grant is ultimately decided by the organisations holding the assets, and their limits change. Administering an estate carries personal legal responsibility, and you should obtain advice from a qualified solicitor, accountant or other regulated professional where appropriate. Always check current rates, fees and deadlines against GOV.UK before acting.