This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Comprehensive guide to whether a will can include pension benefits in England and Wales. Learn how pension death benefits are paid, the role of nomination forms and trustees, how wills interact with pension nominations, and practical steps to align your estate and pension planning.
Pensions are a central part of retirement planning for many people in England and Wales. Consequently, questions often arise about what happens to pension benefits when a member dies and whether those benefits can be “left” through a will. Unlike other assets such as property or savings accounts, pensions are treated differently under UK law because they are normally held in trust and subject to specific scheme rules. This article explains when and how pension benefits relate to wills, how pension beneficiaries are appointed, how inheritance tax may affect pension benefits, and practical considerations for ensuring your pension death benefits are distributed in line with your intentions.
How Pension Benefits Are Treated on Death
Most private and workplace pensions are held within discretionary trusts rather than forming part of the member's estate. This means that the pension scheme trustees (for defined contribution pensions) or the scheme rules (for defined benefit pensions) determine how death benefits are paid, rather than the terms of a will.
Defined benefit (final salary) pensions typically provide ongoing benefits to dependants or a lump sum according to the scheme's rules. Defined contribution pensions usually allow the member to make a nomination or expression of wish indicating who they would prefer to receive any lump sum death benefit. Trustees generally respect that nomination, but it remains a letter of wishes, not a binding legal direction.
Because pension schemes operate under trust, pension death benefits typically do not fall into the estate, and therefore are not distributed by a will. Including instructions in a will about your pension usually carries little legal effect because the trustees' powers and scheme rules override the will in this context.
Nomination (Expression of Wish) Forms
To control who receives your pension benefits on death, pension schemes provide members with nomination forms or expressions of wish. These forms allow you to state your preferred beneficiaries for any lump sum and, in some schemes, ongoing benefits. Most providers allow nominations to be made to:
- Individuals (family, friends)
- Multiple people with specified shares
- Charities or other organisations
Although these nominations are generally not legally binding, trustees usually follow them unless there is a clear reason not to do so. Failing to complete or update a nomination can leave trustees to decide who should receive the benefits, which may not align with your intentions.
It is common for scheme administrators to consult the nomination when making payments. Trustees often take into account family circumstances and dependants' needs when exercising their discretion.
Why Pension Benefits Are Usually Excluded from a Will
There are several reasons why pensions are not typically included in wills:
1. Trust Structure
Because pension funds are held in trust, the legal ownership and discretion rest with trustees rather than with the member's estate. This makes the pension benefits operate outside the will's administration.
2. Distribution Rules Set by Scheme
Defined benefit schemes have their own statutory and contractual rules governing who can receive continued pension or lump sum benefits. These rules usually focus on dependants such as a spouse, civil partner, or financially dependent children. A will cannot override such scheme rules.
3. Potential for Confusion or Conflict
Mentioning pension benefits in a will without a nomination form may cause confusion and potentially contradict the pension provider's expectations or scheme rules. Providers usually advise relying on the nomination process rather than the will.
Some people still choose to mention their pension intentions in a will “for clarity”, but this generally serves more as a statement of wishes rather than an enforceable legal instruction.
Inheritance Tax and Pension Benefits
Under current rules, most pension funds and death benefits from pensions are excluded from the deceased's estate for Inheritance Tax (IHT) purposes because they are paid outside the estate via trustees. This can make pensions a tax‑efficient way to transfer wealth. However, upcoming legislative changes from 6 April 2027 will treat unused pension funds and death benefits as part of the estate for IHT purposes, meaning personal representatives may need to report and pay any IHT due on unused pension benefits as part of estate administration.
Even with these changes, the process of nomination and trustee discretion will remain central to pension benefit distribution rather than the will. What changes is mainly how the pension's value is counted in the estate's overall tax calculation.
Practical Steps for Pension Planning and Wills
Although a will typically cannot directly dictate pension benefit distribution, you should take the following steps to align your intentions:
1. Complete or Update Nomination Forms
Ensure each pension provider's nomination form or expression of wish is completed and reflects your current wishes. Review these after major life events such as marriage, divorce, or the birth of children.
2. Keep Records of Your Pension Schemes
Make a list of all pension arrangements you hold and where to find contact details for the trustees or administrators. Inform your executors or personal representatives where to locate this information.
3. Mention Pensions in Supporting Documents
Your will can refer to your pension nominations or express your expectations (e.g., a letter of wishes) even though these references do not legally control the pension trustees. This can reduce misunderstandings between your will and pension arrangements.
4. Review Estate Planning in Light of IHT Changes
Given the upcoming inclusion of pension funds in estate valuations for Inheritance Tax purposes, consider how your overall estate plan interacts with pension benefits and broader tax thresholds.
5. Seek Professional Advice
Pensions can be complex and rules vary by scheme type and provider. Discussing your plans with a solicitor or financial adviser specialising in pensions and estate planning can help ensure that your intentions are properly documented and realistic.
Common Questions About Pensions and Wills
Can my will override my pension nominations?
No. In most cases, pension benefits are paid according to the pension scheme's rules and any nomination you have submitted to the provider. A will cannot generally override these rules.
Should I include pension instructions in my will?
Mentioning pensions in a will is possible, but because the trustees control distribution, it is mainly useful for expressing wishes rather than directing payment. The nomination forms remain the primary mechanism for specifying beneficiaries.
What if I have multiple pensions?
You should complete an expression of wish form for each pension arrangement, as each scheme operates separately. Failure to do so can lead trustees to decide beneficiaries independently.
Does the state pension pass under my will?
State Pension benefits generally cease on death and do not pass under a will, although there may be limited survivor benefits available in specific circumstances.
Key Takeaways
A will cannot generally include pension benefits in the same way it deals with other assets because most pension funds exist outside the estate and are distributed under trust arrangements by scheme trustees. Completing or regularly updating nomination forms (expressions of wish) with your pension providers is the most effective way to influence who receives your pension death benefits. Wills can still mention pension wishes for clarity, but trustees' discretion and scheme rules determine actual distributions. Upcoming changes to inheritance tax rules from April 2027 will expand the scope of pensions within estate valuations for tax purposes, underscoring the importance of integrated pension and estate planning.
