Q&As

Can executors use the deceased's pension's lump sum death benefit (that they have received because there was no nomination in place and which the pension trustees have said should be distributed 'with the estate') to pay the estate's IHT liability, debts and administration expenses?

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Published by a LexisNexis Private Client expert
Published on: 16 June 2023

The funds from a deceased individual’s pension do not usually form part of the estate on death. On that basis, the sum is (on the face of it) neither subject to inheritance tax (IHT) nor available to pay expenses or debts of the estate. By nominating it to pass ‘with the estate’, it appears that the pension trustees intend it to pass to the beneficiaries of the estate, rather than its creditors.

If

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Jurisdiction(s):
United Kingdom

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