If you die before age 75, the value of your pension can be paid to your beneficiaries. The payments can take the form of a lump sum or income. The benefits will normally be tax-free, as long as they are paid (or, in the case of the payment of pension income, designated for that purpose) within 2 years of your death. If the value of your pension exceeds your lifetime allowance, your beneficiaries may have to pay an additional tax charge.
Updated on: 25 / 08 / 2021