How to Challenge a Will With Pension Disputes

When a loved one dies, disputes can arise not only over the validity of their will but also over how pension benefits are handled. Pensions are a distinct category of death benefit that often sit outside the estate and the terms of a will, yet disagreements can occur when beneficiaries feel a pension has been misallocated, overlooked, or not properly understood in the context of estate planning.

This guide explains how challenges to wills interact with pension disputes under English and Welsh law, what legal avenues exist, and what practical steps you could consider. It covers the rights of claimants, relevant rules and deadlines, and common questions.

Understanding How Pensions and Wills Interact

Are Pensions Part of a Will?

In most cases, pensions do not form part of a deceased person's estate and therefore are not governed by the terms of a will. Instead, pension death benefits are typically held under trust by the pension scheme's trustees or administrators, who decide who receives them based on scheme rules and any nomination or “expression of wish” form the member completed. A will does not control these benefits.

That distinction is crucial: you cannot directly challenge a will simply to change how pension benefits are paid if they are outside the estate.

Death Benefits and Pensions

After someone's death, pensions usually fall into one of two broad categories:

• Defined contribution pensions - beneficiaries may receive a lump sum or funds via drawdown, depending on scheme rules and nominations.
• Defined benefit pensions - often provide income to dependants or lump sum death benefits; again, what beneficiaries receive is governed by scheme terms, not the will.

Under current practice, trustees have discretion over who receives the death benefits unless the scheme rules require payment to nominated beneficiaries.

Grounds for Challenging a Will

If the dispute concerns the will itself - rather than pension death benefits - the usual legal grounds to challenge a will apply. These include:

• Lack of testamentary capacity - the deceased did not have the mental capacity to make the will.
• Undue influence or coercion - decisions were imposed on the deceased by others.
• Improper execution - the will was not signed and witnessed according to statutory requirements.
• Lack of knowledge and approval - the deceased did not understand or approve of their will's contents.
• Forged or fraudulent documents - the will is not genuine.

These legal challenges aim to invalidate or alter the impact of the will, but they do not directly address pension death benefits unless those benefits are somehow tied into estate assets or nominee instructions.

If Your Concern Is About Pension Benefits

Because pensions are usually held outside the estate and are paid by trustees or scheme administrators, challenging a will alone will not normally affect pension death benefit distributions. However, there are specific routes to pursue if you consider the pension allocation unfair or incorrect:

1. Contact Pension Trustees or Administrators

If you dispute how a pension provider has interpreted nominations or exercised its discretion, the pension scheme's own internal dispute resolution process is often the first step. Trustees or administrators must follow scheme rules and consider evidence such as updated nomination forms, relationship histories, and financial dependency information.

2. Pensions Ombudsman

If the internal appeals process fails or you believe a trustee has acted unfairly or maladministrated the pension benefits, you can escalate a complaint to the Pensions Ombudsman. The Ombudsman can investigate maladministration and make binding determinations within the scope of pension scheme rules and relevant law, although they do not decide on wills themselves.

3. Consider Wider Legal Claims

In some situations, if a testator's will and pension planning were part of a broader estate strategy that may have failed to meet legal obligations (for example, if it left a dependent without reasonable financial provision), you may consider a claim under the Inheritance (Provision for Family and Dependants) Act 1975. This Act allows eligible individuals to apply to the court for reasonable provision from the deceased's estate where the will does not make adequate financial provision.

However, because pension benefits generally sit outside the estate, an Inheritance Act claim will not directly change trustee decisions about pension payouts unless the pension is legally brought into the estate under specific circumstances (for example, if part of the pension is included in estate valuation, which may happen under new inheritance tax rules).

Upcoming Changes Affecting Pension Death Benefits and Estates

From 6 April 2027, most unused pension funds and pension death benefits will be included within the deceased's taxable estate for inheritance tax (IHT) purposes under changes announced in UK Government policy. This change affects how pension assets are treated for IHT calculations and means that personal representatives must report and pay any IHT due on such funds.

Even after this change, pension death benefits will still generally be paid under the scheme's discretionary rules or nominations rather than by the will. But pension inclusion for IHT purposes could indirectly influence estate planning, distribution strategies, and disputes about overall inheritance values.

Practical Steps if You Think a Pension Has Been Wrongly Distributed

1. Check pension documents - identify scheme type and whether you or others were nominated or eligible.
2. Request formal reasons - ask scheme administrators in writing for their decision reasoning.
3. Use internal appeals - most schemes provide an internal dispute route first.
4. Escalate to the Pensions Ombudsman - if internal procedures fail.
5. Consider Inheritance Act claims - if you have been inadequately provided for and the pension interacts with estate values.
6. Seek specialist legal advice early - especially if pension and estate issues are complex or overlapping.

Time Limits and Deadlines

• Inheritance Act claims generally must be brought within six months of the Grant of Probate.
• Internal pension dispute processes have their own timescales set by the pension scheme rules.
• Pensions Ombudsman complaints usually must be submitted within time limits specified in the Pension Schemes Act and Ombudsman rules.

Delays can weaken evidence and reduce your options, so early action is recommended.

Common Questions

Can I challenge a will to change who gets the pension?
No. Because most pensions are held in trust and governed by scheme rules rather than the will, a challenge to a will itself will not change how pension benefits are paid. You must pursue pension scheme dispute procedures or consider pension‑specific legal avenues.

Can pension death benefits be included as part of the estate?
Under current law pension benefits are usually outside the estate, but from April 2027 most unused pension funds and death benefits will be included for inheritance tax purposes. This affects taxation but not the fundamental way trustees choose beneficiaries.

Does an expression of wish guarantee payment?
No. An expression of wish is usually not legally binding, but trustees generally follow it. Trustees have discretion where scheme rules allow.

Key Takeaways

Challenging a will in England and Wales on its own will not usually affect pension death benefits because pensions are normally held outside the estate and distributed by trustees under their own rules and nominations. To resolve pension disputes, focus first on pension scheme procedures and, if necessary, the Pensions Ombudsman. In parallel, where a will may have failed to provide reasonable financial support, a claim under the Inheritance (Provision for Family and Dependants) Act 1975 could offer a remedy for eligible claimants. Understanding the differences between estate assets and pension death benefits is essential for choosing the correct legal route.

James William Steven Parker

James is the founder of UKLegalGuides.com and a former agent at the Ministry of Justice (UK). With a background in processing legal claims, he launched this platform to make the laws of England and Wales accessible to everyone.