Skip to main content
WUHLD
← Back to articles

NHS Death in Service Benefits and Your Will: What You Need to Know

· 26 min

Note: The following scenario is fictional and used for illustration.

Dr. Sarah Mitchell, 38, a hospital registrar in Manchester, spent £800 with a solicitor to create a comprehensive will for her £420,000 estate. She carefully specified that everything should go to her two young children, with her current partner James as guardian.

Three months later, Sarah died unexpectedly in a car accident.

Her family was devastated to discover that her largest single death benefit—an £84,000 NHS death in service lump sum—went to her ex-husband, whom she'd divorced four years earlier. Why? Sarah had updated her will, but she never updated her NHS expression of wish form, which she'd completed 12 years earlier when she first started working for the NHS.

The benefit didn't go through her will at all.

James and her children received her estate as intended, but her ex-husband walked away with £84,000 that Sarah had meant for her children. Most NHS staff don't realize their death in service benefit—often their family's largest source of immediate financial support after their death—sits completely outside their will and can go to the wrong person if they're not careful.

With over 90,000 NHS deaths in service claims processed since 2020, and lump sums typically worth 2x annual salary (£60,000-£100,000 for most NHS staff), understanding how these benefits interact with your will isn't optional—it's essential protection for your family.

This article will show you exactly how NHS death in service benefits work, why they don't go through your will, what an expression of wish form actually does, and how to coordinate both documents to ensure your family is properly protected.

Table of Contents

What Are NHS Death in Service Benefits?

Death in service benefits are life insurance provided through the NHS Pension Scheme, paying a tax-free lump sum to your beneficiaries if you die while working for the NHS.

The lump sum is typically 2x your annual pensionable pay. For a Band 5 nurse earning £35,000, that's a £70,000 benefit. For a consultant earning £90,000, it's £180,000. This is substantial money—often more than most people's private life insurance policies—and it's provided automatically as part of your NHS employment.

You're covered automatically if you're an active NHS Pension Scheme member. There's no application process, no medical underwriting, and no additional cost beyond your standard NHS pension contributions.

Beyond the lump sum, eligible dependants may also receive ongoing pensions. This includes an adult dependant's pension for your spouse or partner, and children's pensions for dependent children up to age 23 if they're in full-time education.

The benefit covers NHS officers, some locum GPs (though with important caveats we'll discuss later), bank staff when actively working, doctors on authorized leave with contributions, and staff on maternity leave.

Emma, a Band 7 nurse earning £45,000, has automatic death in service cover worth £90,000—more than most people's life insurance policies—without ever having to apply or undergo medical checks. This benefit costs her nothing beyond her standard NHS pension contributions.

According to the NHS Business Services Authority, death in service benefits are paid out to approximately 400+ families annually. For typical NHS salaries ranging from £35,000-£45,000 for nurses and £50,000-£90,000 for doctors, this translates to £70,000-£180,000 death benefits that provide crucial financial support when families need it most.

Now that you understand what NHS death in service benefits are, here's the critical part most NHS staff miss: these benefits don't go through your will at all.

Why NHS Death Benefits Don't Go Through Your Will

Death in service benefits are held in a discretionary trust by pension scheme trustees, not owned by you, so they're not part of your legal estate.

Your will only controls assets you legally own—property, bank accounts, personal possessions, investments. But it doesn't control pension benefits, life insurance held in trust, jointly owned property under joint tenancy, or assets already held in trust.

The NHS pension scheme trustees legally own the death benefit and have discretion over who receives it. They're not bound by your will.

This structure exists primarily for inheritance tax efficiency. Keeping benefits outside your estate means they're not subject to 40% inheritance tax, which can save your family tens of thousands of pounds.

When you die, your estate goes through probate and is distributed according to your will. But your NHS death in service benefit never enters your estate. Instead, pension trustees hold a separate pot of money and decide who gets it based on your expression of wish form (which we'll cover next) and their own assessment of your dependants.

Mark, a GP, had a will leaving everything equally to his three adult children. When he died, his £140,000 NHS death benefit went only to his dependent youngest child (who had special needs), while his estate was split three ways as his will specified. The pension trustees used their discretion to prioritize the dependent child, overriding what seemed to be Mark's intention in his will to treat all children equally.

Here's the common misconception: "I mentioned my NHS pension in my will, so it's covered." The reality? Your will cannot control pension death benefits. Even if you write "I leave my NHS death benefit to X" in your will, this instruction is legally meaningless. The pension trustees' discretion—guided by your expression of wish—determines who receives it.

Your Will Controls Your Will Does NOT Control
Property you own NHS death in service benefit
Bank accounts Pension benefits
Personal possessions Life insurance in trust
Investments in your name Jointly owned property (joint tenancy)
Business interests Assets already in trust

So if your will doesn't control your death benefit, what does? That's where the expression of wish form comes in.

What Is an Expression of Wish Form and Why It Matters

An expression of wish form (NHS uses forms DB2, PN1) is a non-binding document where you nominate who you'd like to receive your death in service lump sum.

Unlike a will, which is legally binding, an expression of wish is exactly what it sounds like—an expression of your wishes. Trustees aren't legally required to follow your nomination, though in practice they typically follow it in most cases unless there are strong reasons not to (such as a dependent's greater need or suspicious circumstances).

The form DB2 is for death benefit nominations for members with service after April 1, 2008. DB1 is for members whose membership ended before April 1, 2008. PN1 is a partner nomination form used for survivor pensions, which is separate from the lump sum death benefit.

You can nominate anyone—spouse, partner, children, friend, charity, or multiple people in specified proportions. They don't have to be a dependent.

Expression of Wish Form Will
Non-binding guidance Legally binding instruction
Controls NHS death benefit only Controls your entire estate
Trustees have discretion Executors must follow will
Doesn't go through probate Goes through probate
Can be completed informally Requires witnesses, formality
Should be updated regularly Updated after major life events

Dr. Aisha completed an expression of wish form in 2018 naming her civil partner Fatima to receive her death benefit. When Aisha died in 2024, the trustees paid the £95,000 benefit directly to Fatima within 6 weeks—no probate, no delays. Meanwhile, Aisha's estate (worth £380,000) took 14 months to go through probate. The expression of wish enabled fast payment when Fatima needed it most.

Common mistakes NHS staff make include never completing the form (many NHS staff have never done this), completing it once and forgetting about it (forms from 10+ years ago often name ex-partners, deceased parents, or people no longer in your life), assuming it's binding (some people write elaborate plans assuming trustees must follow them—they don't have to), not coordinating with their will (saying different things in your will and expression of wish creates confusion), and nominating minors directly (if you nominate a child under 18, the money may be held until they're 18 or require a guardian to claim it).

Check your NHS ESR (Electronic Staff Record) or log into your NHS Pensions online account to see if you have an expression of wish form on file. If you completed one more than 5 years ago, or if your life circumstances have changed (marriage, divorce, new children, estrangement), update it immediately using form DB2.

Now let's look at how different NHS pension schemes affect your death benefits.

How the 1995, 2008, and 2015 NHS Pension Schemes Differ for Death Benefits

The NHS has three main pension scheme sections, and the calculation of your death benefit depends on which section you were contributing to when you died.

The 1995 Section is a final salary scheme for long-serving NHS staff and is the most generous. The 2008 Section is also a final salary scheme introduced for new joiners from April 2008 to March 2015, with similar but slightly different calculations. The 2015 Scheme is a career average scheme and is now the default for all NHS staff unless you have protected rights.

For the 1995 Section, if you're an active member, the lump sum equals 2x the best of your last 3 years of actual pensionable pay. For example, if your best annual pay was £48,000, the lump sum would be £96,000.

For the 2008 Section, if you're an active member, the lump sum equals 2x actual reckonable pay (the best 3 consecutive years from the last 10). For example, if the average of your best 3 years is £53,667 (calculated from £52,000, £54,000, £55,000), the lump sum would be £107,334.

For the 2015 Scheme, if you're an active member, the lump sum equals the higher of 2x relevant earnings in the last 12 months OR 2x revalued pensionable earnings from the highest earning reference period. For example, if you earned £60,000 in the last 12 months, the lump sum would be £120,000.

If you've left the NHS and have deferred benefits, the calculations differ. The 1995 Section pays 3x your deferred annual pension. The 2008 Section pays 2.25x your deferred annual pension. The 2015 Scheme pays 2.025x your deferred annual pension.

Dr. James, age 55, has been an NHS consultant since 2001. He has both 1995 Section membership (2001-2015) and 2015 Scheme membership (2015-present). If he dies in service, his death benefit would be calculated under whichever section he was most recently actively contributing to—in this case, the 2015 Scheme, which would pay approximately 2x his current £95,000 salary = £190,000.

If you have service in multiple schemes, your death benefit is usually calculated based on the scheme you were most recently actively contributing to when you died. However, your surviving dependants may also receive pension benefits calculated separately for each scheme section based on your service in that section.

Scheme Calculation Method Example Lump Sum (Band 5 Nurse £35,000)
1995 Section 2x best of last 3 years pay £70,000
2008 Section 2x reckonable pay (best 3 of last 10) £70,000
2015 Scheme 2x highest annual earnings £70,000

While these examples produce the same result, the calculation methods differ. In practice, especially for staff with varying hours or salary fluctuations, the outcomes can differ significantly. Staff who've received substantial pay increases in recent years may benefit more from the 2015 Scheme calculation, while those with more stable earnings histories may see little difference.

Understanding your death benefit amount is important, but even more critical is understanding the tax implications.

Inheritance Tax: Why Keeping Death Benefits Outside Your Estate Matters

If your benefit goes to a nominated person through the expression of wish, it's usually inheritance tax-free because it never enters your estate. If your benefit goes to your estate (because you didn't nominate anyone or trustees decided this was appropriate), it's subject to 40% inheritance tax on amounts over the £325,000 nil-rate band—potentially costing tens of thousands in unnecessary tax.

NHS death benefits are held in a discretionary trust by pension scheme trustees. Because you don't legally "own" this money, it's not part of your estate for inheritance tax purposes. Trustees paying directly to your nominated beneficiary keeps it outside your estate. This structure is automatic—you don't need to set up a separate trust.

The tax benefit fails when you haven't completed an expression of wish form (trustees may pay the benefit to your estate, making it subject to inheritance tax), when you have no eligible beneficiaries (if you have no spouse, partner, or dependants, the benefit may go to your estate), or in rare cases when trustees' discretion leads them to decide your estate is the appropriate recipient.

Sarah, an NHS manager, died with an estate worth £500,000 plus an £80,000 death in service benefit. Because she'd completed an expression of wish form nominating her brother, the £80,000 went directly to him tax-free. Her estate paid inheritance tax on the amount over £325,000 (£500,000 - £325,000 = £175,000 x 40% = £70,000 IHT).

If the death benefit had gone into her estate instead, her estate would have been worth £580,000, triggering inheritance tax of £102,000 (£580,000 - £325,000 = £255,000 x 40%). The expression of wish form saved £32,000 in inheritance tax.

Death benefits must be paid within 2 years of the trustees being notified of your death to avoid a potential HMRC tax charge. If trustees take longer than 2 years, the benefit may become subject to a special lump sum death benefits charge.

If your nominated beneficiary is your spouse or civil partner, inheritance tax doesn't apply regardless of the amount, because spouses benefit from unlimited inheritance tax exemption. This means for married couples, the tax efficiency is less critical—though the probate-bypass is still valuable for fast payment to surviving family members.

From April 6, 2027, following the Autumn Budget 2024 announcement, most pension death benefits WILL be brought into your estate for inheritance tax calculation. However, death-in-service benefits will remain EXEMPT from this change, preserving their tax-free status. This makes your expression of wish form even more important for protecting your family from unnecessary tax.

Now that you understand the tax implications, let's look at how to coordinate your expression of wish with your will.

Coordinating Your NHS Death Benefit With Your Will: A Practical Strategy

Your expression of wish form and your will should work together as two parts of a single estate plan, not contradict each other or work at cross-purposes.

Strategy 1: Align Your Nominees With Your Will Beneficiaries

If your will leaves everything to your spouse and children, your expression of wish should typically nominate the same people. This ensures consistency and avoids family conflict.

For example, your will says: "I leave my entire estate to my wife Claire, or if she predeceases me, to my two children equally." Your expression of wish says: "I nominate my wife Claire to receive my death benefit, or if she predeceases me, my two children James and Lucy in equal shares."

Strategy 2: Use Death Benefit to Balance Your Estate

If your estate is unequal (for example, you're leaving your house to one child who cares for you), you can use your death benefit to balance things out.

Mike's will leaves his £350,000 house to his daughter Emma, who has been his full-time carer for 5 years. Mike's expression of wish nominates his son Daniel to receive his £100,000 death benefit. This creates a roughly equal distribution (Emma: £350,000 property, Daniel: £100,000 cash + share of remaining estate).

Strategy 3: Use Letter of Wishes to Explain Your Expression of Wish

A letter of wishes is an informal document attached to your will that explains your intentions. While it's not legally binding, it helps trustees and executors understand your overall plan.

For example: "I have completed an expression of wish form nominating my partner James to receive my NHS death in service benefit. James is not my legal spouse, so under intestacy rules he would receive nothing from my estate. My intention is for James to receive the death benefit (approximately £90,000) and my estate (approximately £180,000) to be split equally between my two adult children from my previous marriage. I believe this fairly reflects James's need for immediate financial support while ensuring my children inherit the family assets."

Strategy 4: Don't Duplicate—Coordinate

Don't write: "I leave my NHS death in service benefit to my daughter Sarah." This is meaningless because your will cannot control this benefit.

Instead write: "I have nominated my daughter Sarah to receive my NHS death in service benefit via my expression of wish form completed on [date]. For the avoidance of doubt, my executors should not treat any death in service benefit as part of my estate."

This acknowledges the separate structure without trying to control it through your will.

Strategy 5: Update Both Documents Together

Create a "Life Event Checklist" for when to review both documents: marriage or civil partnership, divorce or separation, birth or adoption of children, death of a beneficiary or nominee, estrangement from family member, significant change in financial circumstances, moving abroad or returning to UK, and at minimum every 5 years (even if nothing changed).

Dr. Priya divorced her husband in 2019 and updated her will immediately to remove him as beneficiary. She forgot to update her NHS expression of wish form, which she'd completed in 2012. When Priya died in 2023, her £110,000 estate went to her children as her will specified—but her ex-husband received the £98,000 death benefit because her outdated expression of wish still named him. Coordinated updating would have prevented this outcome.

There are situations where your expression of wish and will should intentionally differ. For example, you might direct the death benefit to immediate family who need fast cash (expression of wish), while your estate goes to long-term beneficiaries via trust (will). Or the death benefit might go to a dependent who can't manage money (to trigger dependant's pension instead), while your estate goes to capable adult beneficiaries (will). Or the death benefit goes to a non-spouse to avoid inheritance tax (expression of wish), while the estate goes to your spouse who has inheritance tax exemption (will).

One group of NHS staff faces unique challenges with death benefits: locum GPs and bank staff.

Special Considerations: Locum GPs, Bank Staff, and Flexible Workers

For locum GPs, coverage depends on when you die. You're only covered for death in service if you die while actively working a locum shift as a contributing member. If you die on a day when you're not working a locum shift, you receive "death in deferment" benefits instead—typically much lower, calculated as 3x deferred pension rather than 2x current earnings.

The practical impact is significant. A locum GP earning £80,000/year might have £160,000 death in service cover if they die on a working day, but only £45,000 (3x £15,000 deferred pension) if they die on a non-working day.

Dr. Hassan worked as a locum GP 3 days per week, earning £90,000 annually. He died on a Friday (non-working day) from a sudden heart attack. Because he wasn't actively working that day, his death benefit was calculated as death in deferment: 3x his deferred annual pension (£18,000) = £54,000, rather than 2x his current earnings (£180,000). His family received £126,000 less than if he'd died on a Wednesday.

Bank staff (nurses, doctors, allied health professionals) face similar rules to locum GPs—they must die while actively working and contributing. Part-time contracted staff with regular contributions are fully covered. Bank staff who work ad-hoc shifts face the same gap as locums.

Staff on authorized leave with contributions (such as maternity leave or sabbatical where you're still contributing) are covered. Staff on authorized leave without contributions may not be covered unless your contract specifies continued benefits. For unpaid sickness absence, benefits are calculated as if you died in service before your earnings ceased (favorable treatment).

Mental health officers over 60 who've reached maximum service in the 1995 scheme may still get death in service lump sum based on 2x annual pay even if not currently contributing.

If you've taken partial retirement (accessed some of your pension while still working), death benefits apply only to the portion not yet accessed. Your beneficiaries receive both the death benefit for your unaccessed pension AND the "balance" death benefit for your already-accessed pension (if you've been retired less than 5 years).

Action steps for flexible workers: First, check your status by confirming with NHS Pensions whether your working pattern qualifies you for full death in service cover. Second, consider private life insurance if you have coverage gaps (such as locum on non-working days) to supplement with private life insurance. Third, update your expression of wish more frequently because flexible workers often have more life changes (moving between trusts, changing work patterns)—review every 2-3 years minimum.

Whether you're a full-time staff member or flexible worker, one decision remains critical: updating your expression of wish and creating your will.

How to Update Your Expression of Wish and Create Your Will

Updating Your NHS Expression of Wish Form:

Step 1: Download the Correct Form

Download the DB2 Form for members who joined or were contributing after April 1, 2008 (most current NHS staff) from https://www.nhsbsa.nhs.uk/sites/default/files/2017-03/Death%20benefit%20nomination%20form%20-%20DB2%20%282016%29_0.pdf. Use DB1 Form for members whose membership ended before April 1, 2008. Use PN1 Form for nominating a partner for ongoing survivor pension (separate from lump sum).

Step 2: Complete the Form

In Section 1, provide your personal details (name, NHS Pension Scheme number, date of birth). In Section 2, provide nominee details—you can nominate one person to receive 100%, multiple people with percentages that total 100%, or one organization/charity (you cannot mix individuals and organizations on the same form). In Section 3, sign and date (the form doesn't require witnesses).

Step 3: Submit the Form

Post to NHS Pensions, PO Box 2269, Bolton, BL6 9SE, or upload via your NHS Pensions online account. Keep a copy stored with your will and tell your family where it is.

Step 4: Confirm Receipt

Phone NHS Pensions after 2 weeks to confirm they received and processed your form. Request confirmation of who is currently nominated.

Common expression of wish mistakes to avoid: If percentages don't add to 100% (if you nominate 3 people at 33% each, trustees have to use discretion for the remaining 1%—specify clearly, such as 34%, 33%, 33%). Nominating minors directly (better to nominate their guardian or parent "as trustee for [child name]"). Vague descriptions ("My children" is ambiguous if you have step-children—use full names and relationships). Not updating after divorce (divorce doesn't automatically revoke an expression of wish, unlike a will in England & Wales).

Creating Your Will:

You need both an expression of wish AND a will because the expression of wish covers your NHS death benefit (usually £60,000-£180,000), while your will covers everything else (property, savings, investments, pensions not covered by expression of wish). Combined, these might be £300,000-£800,000+ for a typical NHS professional.

Your will should cover named executors (who will administer your estate), guardians for children (who will care for your children if both parents die), beneficiaries (who inherits your estate and in what shares), specific gifts (sentimental items, jewelry, family heirlooms), funeral wishes (burial, cremation, or donation to medical science), and a letter of wishes (explaining your expression of wish nominations and overall intentions).

Understanding NHS death benefits and how they interact with your will is complex. But creating the will itself doesn't have to be.

With WUHLD, you can create your complete, legally binding will online in just 15 minutes for £99.99—a fraction of the £650+ most solicitors charge.

What You Get:

  • Your legally binding will
  • 12-page Testator Guide (explains each section)
  • Witness Guide (step-by-step signing instructions)
  • Complete Asset Inventory document
  • Letter of wishes template (to explain your expression of wish)

Why WUHLD Works for NHS Staff:

  • Understands complex situations: Guidance for coordinating death benefits with your will
  • Guardian provisions: Critical for NHS staff with young children
  • No hidden fees: £99.99 one-time payment, no subscriptions
  • Preview free: See your complete will before paying anything

Include this type of clause in your will: "I acknowledge that I have completed an expression of wish form with NHS Pensions dated [DATE] nominating [NAME] to receive my death in service benefit. For the avoidance of doubt, my executors should not treat any NHS death in service benefit as part of my estate for distribution purposes."

Create Your Will Online – Free Preview

Action Timeline:

This week:

  • Download DB2 form from NHSBSA
  • Complete expression of wish form
  • Post to NHS Pensions

This month:

  • Create your will with WUHLD
  • Add letter of wishes explaining expression of wish
  • Tell your family where both documents are kept

Every 3-5 years:

  • Review expression of wish and will
  • Update after any major life change
  • Confirm NHS Pensions has current form on file

Frequently Asked Questions

Q: Do NHS death in service benefits go through my will?

A: No, NHS death in service benefits do not automatically go through your will. These benefits are held in a discretionary trust by pension scheme trustees and are paid according to your expression of wish form, not your will. If you don't complete an expression of wish, trustees have discretion over who receives the benefit, which may not align with your will.

Q: What is an expression of wish form for NHS death benefits?

A: An expression of wish form (PN1 or DB2) is a non-binding document that tells NHS pension scheme trustees who you'd like to receive your death in service lump sum. While trustees aren't legally required to follow it, they typically do. This helps keep the benefit outside your estate for inheritance tax purposes.

Q: How much is the NHS death in service lump sum?

A: The NHS death in service lump sum is typically two times your annual pensionable pay. For example, if you earn £40,000, your beneficiaries would receive £80,000 tax-free. The exact calculation varies slightly between the 1995, 2008, and 2015 NHS pension schemes.

Q: Can I leave my NHS death in service benefit in my will?

A: No, you cannot control NHS death in service benefits through your will because they're held in a discretionary trust. Instead, you must complete an expression of wish form (DB2) to nominate beneficiaries. Your will only controls assets that form part of your legal estate, which death in service benefits specifically do not.

Q: What happens if I don't nominate anyone for my NHS death benefit?

A: If you don't complete an expression of wish form, the pension scheme trustees will decide who receives your death in service benefit using their discretion. This typically means it goes to your legal spouse or civil partner, or into your estate if you have neither. Going into your estate could make it subject to inheritance tax and probate delays.

Q: Should my will mention my NHS death in service benefits?

A: While your will cannot control death in service benefits directly, it's helpful to reference them in a letter of wishes attached to your will. This provides context for your overall estate plan and ensures your family knows about the separate expression of wish form. However, the expression of wish form always takes precedence.

Q: Are NHS death in service benefits taxable?

A: NHS death in service benefits are usually tax-free for beneficiaries if you die before age 75 and the payment is made within two years. However, if the benefit goes to your estate (because you didn't nominate anyone), it may be subject to inheritance tax at 40% on amounts over the nil-rate band of £325,000.

Conclusion

Key takeaways:

  • NHS death in service benefits (typically 2x your salary = £60,000-£180,000) don't go through your will—they're held in a discretionary trust by pension scheme trustees
  • You control who receives your death benefit through an expression of wish form (DB2), not through your will—update it after every major life change
  • If you don't complete an expression of wish, trustees decide who receives the benefit, which may not match your intentions and could subject it to inheritance tax
  • From April 2027, most pension death benefits will be included in estates for inheritance tax, but death-in-service benefits will remain exempt—making your expression of wish even more valuable
  • Locum GPs and bank staff face coverage gaps (only covered on days they're actively working)—consider supplementing with private life insurance
  • Coordinate your expression of wish and will together as one estate plan to ensure your family receives what you intend

Your death in service benefit may be the largest single payment your family receives after your death. Don't let it go to the wrong person because of an outdated form from 10 years ago.

Create your legally valid will today and update your NHS expression of wish form. Your family's financial security depends on both documents working together.

With WUHLD, you can create your complete will online in just 15 minutes.

For £99.99 (vs £650+ for a solicitor), you'll get:

  • Your complete, legally binding will
  • A 12-page Testator Guide
  • A Witness Guide
  • A Complete Asset Inventory document
  • Letter of wishes template to coordinate with your expression of wish

You can preview your entire will free before paying anything.

Preview Your Will Free – No Payment Required

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.

Sources: