Benefits if you Die

Benefits if you Die

What happens if I die before taking my benefits?

The balance of your Account will normally be paid as a lump sum from the Plan.

Cash lump sum death benefits are normally free of tax as long as the total benefits are within your Lifetime Allowance and paid before you would have reached age 75. Your Executors or Legal Personal Representatives are liable to account for and pay any tax due to HMRC if your benefits exceed the Lifetime Allowance.

You can tell the Trustee who you would like to receive the lump sum by filling in a Statement of Wish form. You can nominate relatives, friends, clubs, societies or charities to receive the money.

The Trustee though has the final say over who receives the cash lump sum. There are two advantages to this:

  • it is likely to prevent long delays in settling the estate; and
  • it means that under current rules, the money can be paid free of income tax and inheritance tax.

You can obtain a new copy of the Statement of Wishes from the Plan Administrator, if your circumstances change and you wish to change your existing nomination(s). 

After age 75, if you still haven't taken your benefits, the tax charge will depend upon whether the payment is made to a nominated individual or to someone appointed to act on your behalf e.g. your legal personal represetatives. Further details are available from the Plan administrators.

 What happens if I die after taking my pension savings out of the Plan?

Any benefits paid on death after you have withdrawn your pensions savings under the Plan will depend on how you have set up any new arrangements and the tax laws in place at the time. Your provider will be able to confirm the arrangements you have in place.


Control Version: 4 October 2018