The short answer is: most pensions don't pass through your will. They pass through a separate document called an expression of wish (or "nomination"), which you give to your pension scheme. People often discover this only when they sit down to write a will and find the pension pot — often their largest single asset — isn't covered by it.
Here's how UK pensions actually pass on death, what you need to do alongside the will, and a major change coming in April 2027 that everyone with a pension should know about.
Why pensions usually sit outside the will
Most modern UK pensions are held in trust. Legally, you don't own the fund directly — the trustees of the scheme own the assets and you have a right to benefits. When you die, the trustees decide who receives what's left.
Because the fund isn't part of your estate in the strict legal sense, your will can't dictate where it goes. Two consequences:
- The pension generally avoids inheritance tax (until April 2027 — see below)
- The pension generally avoids probate, so the money can be paid out faster than other inheritances
This is true for the great majority of UK pensions:
- Workplace defined contribution pensions
- Personal pensions and SIPPs
- Stakeholder pensions
- Most modern occupational schemes
Older or unusual structures (some retirement annuity contracts, some non-trust-based arrangements) may be different. For complex estates, we recommend you seek assistance from a Trusted Hands Advisor or your own legal advice.
How the pension actually passes on death
This depends on whether you've started drawing it.
Before retirement (still accumulating):
- The trustees pay out the pension pot to one or more beneficiaries
- They are guided but not bound by your expression of wish
- Recipients can usually choose to take the lump sum, an annuity, or — if the scheme allows — keep it as a beneficiary's drawdown pension
After retirement, in drawdown:
- The remaining fund passes the same way, via the expression of wish
- Beneficiaries can typically continue the drawdown in their own name
With an annuity:
- Annuities typically end on death unless you bought a guaranteed period or a joint-life annuity. Anything paid under those provisions passes accordingly.
Final salary / defined benefit pensions:
- Often pay a survivor's pension to a spouse or civil partner
- May pay a child's pension for dependent children
- Lump sum death benefits may be paid in addition
- Each scheme's rules differ, so the scheme booklet is the source of truth
If you'd rather just get on with it, our guided will builder prompts you to think through the pension nomination alongside the will so they line up.
The expression of wish — what it is and how to use it
An expression of wish is a simple form, usually a one-pager, where you tell your pension scheme who you want to receive your pot if you die. You can:
- Name one or more individuals
- Specify percentage splits
- Name a trust
- Update it at any time, free of charge
Trustees follow it in the great majority of cases — they need a strong reason to deviate. But because they retain discretion, the fund stays outside your estate for inheritance tax purposes (under current rules — see April 2027 below).
A few things worth knowing:
- Old expressions of wish persist. If you nominated an ex-partner ten years ago and never updated it, that's what the trustees see.
- Not all schemes default to "spouse first." Some pay according to scheme rules unless you've specified.
- A divorce doesn't automatically revoke an expression of wish (unlike a will, where ex-spouse provisions are usually cancelled by section 18A of the Wills Act 1837).
If you've changed jobs several times, you may have several pensions, each with its own expression of wish. Tracking them all down is part of the homework.
The big change: April 2027
The Autumn 2024 Budget announced that from 6 April 2027, most unused defined contribution pension funds and lump sum death benefits will fall into the deceased's estate for inheritance tax purposes. This is a major shift.
What this means in practice:
- Pensions that previously passed inheritance-tax-free will be added to the estate value
- They'll be tested against the £325,000 nil-rate band and (if a home is also passing to direct descendants) the £175,000 residence nil-rate band, both frozen until April 2030
- Inheritance tax at 40% will apply to anything above the combined allowances
- Income tax for the recipient still applies in some scenarios (if you die after age 75), creating a potential double layer
It does not affect death-in-service benefits paid to dependants in most cases, charities, or spouses (transfers between spouses remain exempt). The detail is still being finalised in regulations as of 2026, so anyone with a substantial pension should keep this on the radar. For complex estates, we recommend you seek assistance from a Trusted Hands Advisor or your own legal advice.
The change affects how families plan around pensions. For decades the standard advice has been "spend other assets first, leave the pension last" — that calculus is changing.
So what can the will do for the pension?
A few things, even though it doesn't control most pensions directly:
- Tidy up legacy schemes — small, old pensions may sometimes pay into the estate if no nomination exists, in which case the will applies
- Direct lump sums that fall back to the estate — some scheme rules pay to the estate as a fallback when no nominee survives
- Coordinate the overall plan — the will and the expression of wish should be reviewed together. Our guide on inheritance tax in the UK covers how the bigger picture fits together
The overall plan also needs to take account of the seven-year rule for any lifetime gifts you've made.
Updating your nomination — when and how
You should review your expression of wish whenever:
- You marry, divorce, or enter a civil partnership
- A nominated beneficiary dies
- You have a child or your existing children's circumstances change significantly
- You change pension providers or consolidate pots
- You haven't reviewed it in five years
Each pension scheme has its own form. Most providers now let you update online; some still require a paper form. It costs nothing.
> Sorting your will? Don't forget the pension nomination. Trusted Hands turns these decisions into a 15-30 minute guided builder. Start free → — only pay when you download.
> Ready to start your will? Trusted Hands turns these decisions into a 15-30 minute guided builder. Start free → — only pay when you download.
Frequently asked questions
Can I leave my pension in my will at all?
In most cases, no. Workplace and personal pensions pass via the expression of wish, not the will. The exception is when the scheme rules pay to your estate (because you have no surviving nominees, for example) — in which case the will then applies.
Does my pension count for inheritance tax?
Until 5 April 2027, most defined contribution pensions are outside the inheritance tax estate. From 6 April 2027, they fall into the estate under the change announced in Autumn 2024. Spouse-to-spouse transfers remain exempt.
What if I haven't filled in an expression of wish?
The trustees will use the scheme's default rules — usually paying to a spouse or civil partner, or to dependants, or in some cases to your estate. The outcome may not match what you'd have chosen. Filling in a nomination takes a few minutes and is free.
Can I leave my pension to a charity?
Yes — most schemes allow charity nominations. There are tax-efficient ways to use this, especially after April 2027 when pensions move into the inheritance tax net.
What about my state pension?
The state pension itself dies with you. A surviving spouse or civil partner may inherit some entitlement (the rules differ for pre- and post-2016 retirees), but there's no lump sum payable. Check the GOV.UK guidance for your specific situation.
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