Does a pension nomination override a will?

Pensions are NOT usually part of your estate and do NOT pass through your will. They are governed by the pension scheme rules and your nomination form. This is actually an advantage — because pensions outside your estate are normally not subject to inheritance tax. This is why updating your nomination form is just as important as updating your will.

What happens to my pension if I die without a nomination?

If you die without a nomination form on file, the pension trustees have discretion to decide who receives the death benefits. They will typically look at your closest relatives (spouse/civil partner first, then children), but the process takes longer and the outcome may not match your wishes. In complex family situations — blended families, estranged relatives — this can cause problems.

How often should I update my pension nomination form?

Review your nomination form whenever there is a significant life change: marriage, divorce, birth of a child, death of a nominee, new partner, or separation. As a general rule, review all nomination forms at least every 2–3 years. Many people set and forget — which can mean an ex-spouse is still nominated.

Pension Nomination Form — Why It Matters and How to Complete It | PocketWise

Q: What is a pension nomination form?

A pension nomination form (also called an 'expression of wish' or 'death benefit nomination') tells your pension provider who you would like to receive your pension benefits if you die. It is not legally binding in most cases — the pension trustees make the final decision — but they almost always follow your nomination. Without one, the trustees decide who gets the money, which may not be who you would want.

Your pension nomination form is one of the most overlooked financial documents — yet it controls who receives what could be your largest asset if you die. Here is why it matters and how to get it right.

What Is a Pension Nomination Form?

Detail	Information
Also known as	Expression of wish, death benefit nomination, beneficiary nomination
What it does	Tells the pension provider who should receive your pension death benefits
Legally binding?	Usually not — it is an “expression of wish” that trustees use to guide their decision
Who makes the final decision?	The pension scheme trustees — but they almost always follow nominations
Why is it not binding?	This keeps pensions outside your estate for IHT purposes (a significant tax advantage)
Does it override your will?	Yes — pensions do not pass through your will

Why It Matters

Reason	Impact
Pensions can be your largest asset	Average DB pension is worth £300,000+, DC pots can be £100,000+
Pensions are outside your estate	Not subject to IHT if nominations are properly completed
Without a nomination, trustees decide	They may not give the money to who you would choose
Ex-spouses may still be nominated	If you haven’t updated after divorce
Death benefits can be significant	Lump sums of 2–4x salary, plus spouse’s pensions

What Pension Death Benefits Exist?

Defined Contribution (DC) Pensions (Workplace, SIPP)

Your age at death	What your nominees receive	Tax treatment
Under 75	Entire remaining pension pot	Tax-free (lump sum or drawdown)
75 or over	Entire remaining pension pot	Taxed at nominee’s marginal income tax rate

Defined Benefit (DB) / Final Salary Pensions

Benefit	Typical amount
Death before retirement — lump sum	2–4x your salary
Death before retirement — spouse’s pension	50% of your projected pension
Death after retirement — spouse’s pension	50% of your pension (usually for life)
Death after retirement — guaranteed period	If within the guarantee (e.g. 5 or 10 years), remaining payments to estate or nominees
Dependants’ pensions	Some schemes also pay pensions to dependent children

State Pension

Situation	What your spouse may inherit
Pre-April 2016 entitlement	They may inherit extra State Pension
Post-April 2016 entitlement (new State Pension)	Generally cannot be inherited directly
Deferred State Pension	Partner may benefit from the deferred amount

How to Complete a Nomination Form

Step 1: Gather Information

What you need	Details
Full name of each nominee	Their legal name
Date of birth	For identification
Relationship to you	Spouse, partner, child, parent, friend, trust, charity
Address	Current address
Percentage share	Must add up to 100%

Step 2: Decide Who to Nominate

Common nominations	Typical split
Spouse/civil partner	100%
Spouse + children	50% spouse, 50% split between children
Partner (unmarried)	100% or as you wish
Children equally	100% split equally
Trust	100% to a trust (for minor children or complex situations)
Charity	Any percentage

Step 3: Complete the Form

Detail	Guidance
Where to get the form	Your pension provider’s website, HR department, or by phone
Can you do it online?	Many providers now allow online nominations
How long does it take?	5–10 minutes
Do nominees need to sign?	No — they do not even need to know
Witnessed?	Some schemes require a witness signature
Send to	Your pension provider (keep a copy for your records)

When to Update Your Nominations

Life event	Action needed
Marriage	Update — you probably want your new spouse nominated
Divorce	Critical — remove your ex-spouse if they are no longer intended to benefit
Birth of a child	Add the child or update percentages
Death of a nominee	Remove them and reassign their share
New partner (unmarried)	Add them — unmarried partners do NOT automatically benefit
Separation (not yet divorced)	Consider updating — separated spouses may still be nominated
Moving pension to a new provider	Complete a NEW nomination form — nominations do not transfer between providers
Every 2–3 years as a routine check	Review all nominations across all pensions

Common Mistakes

Mistake	Consequence
Never completing a nomination form	Trustees decide who gets the money — may not match your wishes
Nominating ex-spouse and not updating after divorce	Ex-spouse may receive the money — trustees consider the nomination even after divorce
Only nominating one person with no backup	If they die before you, there is no nomination in place
Not completing a new form when switching pension provider	New provider has no nomination on file — old one is irrelevant
Percentages do not add up to 100%	The provider will query this — delays the process
Assuming your will covers pensions	It does not — pensions are separate from your estate
Nominating minor children directly	They cannot receive a lump sum — consider nominating a trust or their parent

Nominations and Inheritance Tax

Factor	Detail
Why pensions are normally IHT-free	Because the nomination is a “wish” not a binding direction — trustees exercise discretion
What would make it IHT-liable	If the lump sum were paid to your estate (if no nomination, this is more likely)
Binding nominations	Some pensions have binding nominations — these ARE part of your estate for IHT
Best practice	Use an expression of wish (not binding) to keep pensions outside your estate

Multiple Pensions — Checklist

Pension	Nomination form done?	Last updated	Nominees
Current workplace pension
Previous workplace pension(s)
SIPP/private pension
Old employer pension(s)
State Pension (inheritable elements)

Go through every pension you have and check the nomination is current. If you have lost track of old pensions, use the Pension Tracing Service.

Nominating a Trust

When to consider a trust	Details
Minor children	A trust holds the money until they reach a specified age
Vulnerable beneficiaries	Protects the money from being mismanaged
Blended families	Can provide for different beneficiaries in different ways
Large pension pots	More control over how the money is used
Cost of setting up a trust	£500–£2,000 via a solicitor

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