NHS Pension and Your Will: A Complete Guide

Dr. Emma Richardson, 38, assumed her will covered everything. As an A&E consultant earning £85,000 with 12 years in the NHS Pension Scheme, she'd carefully written a will leaving her £320,000 estate to her unmarried partner of nine years. When Emma died suddenly from a brain haemorrhage, her partner Tom discovered the £170,000 NHS pension lump sum went to Emma's estranged sister - the person Emma had nominated a decade earlier when they dated briefly. Tom inherited the house through Emma's will, but lost life-changing pension benefits because Emma never updated her NHS pension nomination form.

You're an NHS employee with one of Europe's most valuable pension schemes. With 1.7 million active NHS pension members, death benefits worth billions are paid annually - but most NHS staff don't realize their pension operates completely outside their will. A nomination form isn't just an "expression of wishes" - it's a legally binding instruction that determines where up to 2x your annual salary goes when you die. Get it wrong, and your loved ones could face catastrophic financial consequences, including inheritance tax bills exceeding £82,000.

This guide explains exactly how NHS pension death benefits work, why nomination forms trump your will, and the critical steps to ensure your pension and will work together to protect the people you love.

Why Your NHS Pension Isn't Covered by Your Will

Your NHS pension death benefits operate completely outside your will. This isn't a technicality - it's a fundamental legal principle that catches thousands of NHS staff off guard every year.

NHS pensions are "death benefits" controlled by scheme rules, not estate assets controlled by wills. Think of them like life insurance policies: they bypass your will entirely and go directly to named beneficiaries. Your will controls your house, savings, and possessions. Your NHS pension nomination forms control where your pension death benefits go.

The NHS Pension Scheme has separate legal trustees who make distribution decisions based on nomination forms you submit. These forms (primarily DB2 and PN1) create clear instructions that the scheme follows regardless of what your will says.

Here's the real consequence: Your will says "everything to my partner" but if you nominated your parents on your NHS pension form 10 years ago, your parents get the lump sum regardless of your will. This happens regularly to NHS staff who completed nomination forms when they joined the scheme and never updated them through relationship changes, marriages, divorces, or having children.

You need BOTH a will (for house, savings, possessions) AND NHS pension nomination forms (for pension death benefits). They complement each other - neither replaces the other. Your will can't override your pension nominations, and your pension nominations don't cover the rest of your estate.

Understanding this separation is the first step to comprehensive protection. Learn more about ensuring your will is legally valid to protect your estate assets.

Understanding NHS Pension Death Benefits (What's at Stake)

The NHS Pension Scheme provides three types of survivor benefits when you die: a lump sum death benefit, an adult dependant's pension, and children's pension. For many NHS staff, these benefits are worth more than their entire estate.

The death in service lump sum depends on which scheme section you're in:

Scheme Section	Death in Service Lump Sum	Ongoing Pension to Spouse/Partner
1995 Section	2x pensionable pay (based on last 3 years)	33.75% of member's pension
2008 Section	2x reckonable pay (based on best 3 consecutive years from last 10)	33.75% of member's pension
2015 Scheme	2x revalued pensionable earnings (highest year from last 10)	33.75% of member's pension

According to NHSBSA, these calculations mean substantial sums. If you're a band 6 nurse earning £35,000, your death lump sum is £70,000. If you're a consultant earning £90,000, it's £180,000.

The ongoing adult dependant pension provides long-term security. If you'd have received a £30,000 annual pension, your spouse or nominated partner receives £10,125 annually for life - potentially worth hundreds of thousands of pounds over their lifetime.

Children's pension is payable for eligible children, usually up to age 23 if they're in full-time education. This provides additional security for families with dependent children.

One critical detail: For active 2015 scheme members since April 2022 with earlier 1995/2008 service, the death in service lump sum is only payable from the 2015 scheme. After 5 years in retirement, no death gratuity lump sum is payable - only the ongoing pension to your spouse or partner continues.

These are substantial sums that absolutely must be properly directed. A £150,000 death benefit going to the wrong person because of an outdated nomination form isn't just financially devastating - it's completely preventable.

NHS Pension Nomination Forms Explained (DB2, DB2, PN1)

The NHS uses different forms for different situations. Using the wrong form means your nomination gets rejected and your death benefits go to your estate - triggering probate delays and potential inheritance tax.

Form DB2 (Lump Sum on Death Benefit Nomination) is what most NHS staff need. If your scheme membership started on or after 1 April 2008 OR continued after 31 March 2008, this is your form. It nominates who receives your death lump sum. You can nominate multiple people with specified percentages OR one organization like a charity.

This isn't just an "expression of wishes" - NHSBSA strongly considers your nomination and follows it in the vast majority of cases. Download the official DB2 form from NHSBSA.

Form DB1 (Lump Sum on Death Benefit) serves the same function as DB2 but for earlier scheme members. If your scheme membership ended before 1 April 2008, you need DB1 instead of DB2. This mainly applies to people who left the NHS before 2008 but have deferred benefits.

Form PN1 (Partner Nomination) is critical for unmarried couples. This form nominates your partner to receive the adult dependant's pension - the ongoing income, not just the lump sum. Without PN1, your unmarried partner receives nothing in ongoing pension, even if they get the lump sum through DB2.

To qualify, your partner must be free to marry or enter civil partnership, living together as if married or in civil partnership, and financially interdependent or dependent. Download the official PN1 form from NHSBSA.

After your death, NHS Pensions verifies the relationship still met qualifying conditions at the time of death. This can be intrusive during grief but it's standard process.

Form DB2-PC (Pension Credit Members) is for Pension Credit members whose Pension Sharing Order was implemented after 1 April 2000. This is specific to post-divorce situations where pension sharing occurred.

Form NOM1 (Existing Nomination Cancellation) is used when you want to cancel your previous nomination without making a new one. This is rare - most people simply submit a new form which automatically replaces the old one.

All forms are downloadable from NHSBSA member hub. You submit them to NHS Pensions and keep a copy for your records. To change your nomination, submit a completely new form - the new form replaces the old form entirely.

Here's a common mistake: A woman nominated her ex-boyfriend on DB2 in 2015, got married in 2020, and died in 2024. Her ex-boyfriend received the lump sum because she never submitted an updated form, even though she married. Marriage doesn't automatically update your nominations - you must actively change them.

Married vs Unmarried: Critical Differences in NHS Pension Rights

Your marital status creates a £82,000+ difference in what your partner receives from your NHS pension. This isn't fear-mongering - it's the legal reality of how UK law treats relationships.

Married Couples and Civil Partners receive automatic protection:

The lump sum automatically goes to your spouse or civil partner unless you actively nominate someone else. The ongoing adult dependant pension (33.75% of your pension) is automatic for life - even if they remarry after your death under post-2008 rules. There's no inheritance tax on lump sums paid to spouses or civil partners due to spouse exemption. The claims process is simplified with no need to prove relationship status.

Unmarried Couples have zero automatic rights:

Your partner gets absolutely nothing unless you nominate them. You must complete Form DB2 for the lump sum AND Form PN1 for the ongoing pension - these are separate forms addressing different benefits. Your partner must meet qualifying criteria: free to marry, living together, and financially interdependent.

After your death, NHS Pensions verifies the relationship met qualifying conditions at the time of death. This can involve providing evidence of cohabitation and financial interdependence during a grief-stricken period.

Inheritance tax liability applies: Lump sums paid to nominated qualifying partners ARE subject to inheritance tax, unlike payments to spouses which are exempt.

According to ONS data, 3.5 million couple families are cohabiting (17.7% of all families), yet 46% wrongly believe "common law marriage" gives them rights. There is no such thing as common law marriage in England and Wales.

Here's a real consequence scenario:

NHS nurse Sarah, 42, earns £45,000 with 15 years service. She lives with partner James (not married), owns a £290,000 house jointly, and has combined pension value of £415,000. If Sarah dies without completing PN1 and DB2 nominating James:

NHS pension lump sum (£90,000) goes to her estate instead of directly to James
No ongoing adult dependant pension for James (he loses £6,000+ annually for life)
Combined with home and savings, James could face £82,000+ inheritance tax bill once 2027 pension IHT changes take effect
Probate delays mean James waits 6-12 months for access to Sarah's assets

If Sarah HAD completed PN1 and DB2:

James receives £90,000 lump sum directly (still subject to IHT but faster payment)
James receives £6,000+ annual ongoing pension for life
Significantly better outcome, though still not as protected as marriage

For maximum pension protection, marriage or civil partnership provides automatic rights and inheritance tax exemption. But proper nominations are essential regardless of marital status. If you're unmarried, learn more about why unmarried couples need wills for comprehensive protection.

The 2027 Inheritance Tax Changes (What NHS Staff Need to Know)

The Autumn Budget 2024 announced major pension inheritance tax changes starting 6 April 2027. For NHS staff, these changes are actually somewhat favorable compared to private sector workers.

What's changing: According to the UK Government consultation, from 6 April 2027, most unused pension funds and death benefits will be included in estates for inheritance tax purposes. Pension scheme administrators will have reporting obligations, but personal representatives (executors) remain responsible for paying inheritance tax on pension assets.

Critical for NHS staff: Death in service benefits from non-discretionary schemes like NHS Pension Scheme are being brought OUT of scope for inheritance tax from 6 April 2027. This is favorable - while private sector defined contribution pensions face new IHT charges, NHS death benefits become more tax-advantaged.

The spouse exemption continues unchanged. Assets passed to spouses or civil partners remain exempt from inheritance tax. Dependant pensions (ongoing income) remain exempt from inheritance tax.

For unmarried couples, the 2027 changes increase urgency: From 2027, combined estate plus pension death benefits could trigger large IHT bills for unmarried partners. Consider this scenario: An NHS worker dies, their partner inherits a £290,000 house (half share from joint ownership) plus £415,000 pension plus other assets. The total potentially exceeds the £325,000 nil-rate band significantly, creating an £82,000+ IHT bill.

Compare this to married couples in the same scenario: Zero IHT due to spouse exemption.

The existing IHT rule still applies: Lump sums must be paid within 2 years of NHS Pensions being notified of death, or up to a 45% tax charge applies. This remains unchanged by 2027 rules.

Inheritance tax rules are complex and change frequently. This article reflects rules as of October 2025 and April 2027 changes. Consult a tax adviser for your specific situation, especially if your estate approaches the £325,000 threshold (or £500,000 with residence nil-rate band). Learn more about inheritance tax planning strategies if your estate is approaching these thresholds.

How to Complete Your NHS Pension Nomination Forms (Step-by-Step)

Completing NHS pension nomination forms takes 15 minutes but protects six-figure death benefits. Always worth the time investment.

Step 1: Identify Which Forms You Need

Check your scheme membership dates by logging into My NHS Pension portal or reviewing your Annual Benefit Statement. Most current NHS staff need Form DB2 for the lump sum. If you're unmarried or not in a civil partnership, you also need Form PN1 for ongoing pension rights for your partner. If you left the NHS before 2008, you need Form DB1 instead of DB2.

Step 2: Download Forms

Go to the NHSBSA nominations page and download the appropriate forms. For most unmarried NHS staff in relationships, that's both DB2 and PN1. Forms are PDF fillable - you can type directly or print and handwrite using black ink and capital letters for clarity.

Step 3: Gather Required Information

You'll need your NHS pension member number (on your Annual Benefit Statement), full legal names, dates of birth, and addresses of nominated beneficiaries. For partner nominations, include National Insurance numbers. For PN1, gather evidence you meet qualifying criteria like joint bank statements or utility bills showing cohabitation. If nominating multiple people, decide percentage split (must add to 100%).

Step 4: Complete Form DB2 (Lump Sum Nomination)

Section 1 covers your personal details. Section 2 lists beneficiary details - you can nominate multiple people by specifying a percentage for each. Section 3 requires your signature and date. Don't leave percentages blank - NHSBSA needs clear instructions. Include full addresses to avoid delays tracking down beneficiaries after your death.

Step 5: Complete Form PN1 (Partner Nomination) If Applicable

Section 1 covers your details. Section 2 covers partner's details. Section 3 is a declaration confirming you meet qualifying criteria. Both signatures are required: yours AND your partner's. A missing partner signature means the form gets rejected.

Step 6: Submit Forms

Mail forms to: NHS Pensions, NHS Business Services Authority, Stella House, Goldcrest Way, Newburn Riverside, Newcastle upon Tyne, NE15 8NY. Check with your HR department if they accept forms for forwarding. Keep a photocopy or scan for your records. Consider sending by recorded delivery for proof of receipt (optional but recommended for peace of mind).

Step 7: Store Copies with Your Will

Keep copies of nomination forms with your will. While not legally linked, storing them together is practically helpful. Tell your executor or partner where forms are stored. Add a reminder to review annually using a calendar or phone reminder.

How to Update:

Submit a completely new form - it replaces the old form in its entirety. You can't just amend an existing form. Complete a fresh form with a new date whenever circumstances change.

Confirmation:

NHSBSA doesn't send confirmation of receipt (frustrating but standard practice). If you're concerned, call NHS Pensions helpline at 0300 330 1346 to confirm receipt.

Estimated time for both forms: 15 minutes. Recommended review frequency: Annually, and always after major life events like marriage, divorce, new partner, or children born.

When Your NHS Pension Goes to Your Estate (and Why That's a Problem)

Your pension lump sum goes to your estate if you have NO spouse, civil partner, or nominated qualifying partner AND you've made no nomination. This is the worst-case scenario for your beneficiaries.

Why this is catastrophic:

Probate delays mean your estate must go through full probate before the lump sum can be distributed - typically 6-12 months. Inheritance tax applies: The lump sum becomes part of your estate and IS subject to IHT if your estate exceeds the £325,000 threshold. If you also don't have a will, intestacy rules determine who gets your estate, which may not match your wishes. Legal fees for probate and estate administration reduce what beneficiaries ultimately receive. Once in your estate, the lump sum becomes potentially available to creditors, unlike direct payment to nominees.

Consider this scenario:

Single NHS paramedic Tom, 52, earns £48,000 and owns a £275,000 flat. His death benefit is £96,000. Tom never completed a DB2 form, assuming it would "figure itself out." When Tom dies suddenly, the lump sum goes to his estate.

Estate value: £275,000 (flat) + £96,000 (pension) + £15,000 (savings) = £386,000. Inheritance tax due: (£386,000 - £325,000) × 40% = £24,400. Probate fees: approximately £5,000. Beneficiaries ultimately receive £356,600 - they've lost £29,400 to tax and fees, plus waited months for access to funds.

If Tom HAD nominated his brother on DB2: His brother receives £96,000 directly with no IHT and no probate delay, leaving a £290,000 estate (below threshold = no IHT). Total saved: £29,400 plus 6-12 months of grief and administrative burden.

A 15-minute form saves beneficiaries five figures and months of delay. Does your will help? Yes, your will controls who inherits your estate - but even with a will, having the lump sum go to your estate triggers probate delays and potential IHT. The solution is completing DB2 to nominate specific beneficiaries, which takes the lump sum out of your estate entirely.

Once 2027 IHT changes apply, having pension death benefits fall into your estate becomes even more costly. The combination of estate assets plus pension could push many NHS staff over the £325,000 threshold.

Coordinating Your NHS Pension Nominations with Your Will

Pension nominations and wills should tell a consistent story about who you want to protect. They're complementary documents, not competing instructions.

Three common coordination strategies:

Strategy 1: Match beneficiaries - Nominate the same person in pension forms and will. This is most common for simple situations. Example: Married couple with no children - husband nominates wife for NHS pension lump sum (DB2) and leaves everything to wife in his will. Clean, consistent, and straightforward.

Strategy 2: Split beneficiaries strategically - Different beneficiaries for pension versus estate. This is common with children. Example: NHS nurse nominates partner for pension death benefits (providing immediate financial support) and leaves the house in her will split between partner and adult children (longer-term asset distribution). This balances immediate needs with long-term fairness.

Strategy 3: Coordinate for tax efficiency - Use pension nominations to minimize IHT (advanced strategy). Example: Nominate adult children for pension lump sum (takes it out of estate, reduces IHT) and leave residence to spouse in will (covered by spouse exemption and residence nil-rate band). This requires careful calculation and professional advice.

What your will SHOULD cover:

Your home or property, savings and investments (ISAs, bank accounts), personal possessions (car, jewelry, furniture), business interests, digital assets, guardianship for children under 18 (critical for NHS staff with young families), funeral wishes, and executor appointments. Learn more about appointing guardians for your children in your will.

What pension nominations cover:

NHS pension death lump sum and who can claim adult dependant's ongoing pension (via PN1).

Communication between documents:

Executors should know pension nominations exist. Consider including a note in your will: "I have completed NHS pension nomination forms separately." Store both documents together securely. Update both after major life events simultaneously.

Common mistake - contradictory instructions:

Will says "everything to my children equally." Pension nomination says "everything to my partner." Result: Partner gets pension (£100k+), children get estate. Children may feel shortchanged, leading to family conflict.

Better approach: Clear communication in your will acknowledging pension goes separately. For example: "I am aware my NHS pension death benefits pass via separate nomination to [partner name]; my estate below is to be divided equally among my children."

Life event update checklist:

Marriage or civil partnership: Update BOTH (pension spouse auto-qualifies but check nominations; update will)
Divorce: Update BOTH urgently (pension nominations don't auto-revoke on divorce; wills partially revoke but update anyway)
New partner: Update BOTH (complete PN1 and DB2, create or update will with partner provisions)
Children born: Update BOTH (add guardianship to will, consider whether children should be included in pension nominations)
Partner dies: Update BOTH (remove deceased from nominations, update will beneficiaries)

Action step: Review your pension nominations and will side-by-side. Do they tell a consistent story? If not, update now.

Special Situations: Divorce, Remarriage, and Complex Families

NHS staff have the same complex families as everyone else, but pension nominations need careful handling in these situations.

Divorce and NHS Pensions:

Critical fact: NHS pension nominations do NOT automatically cancel on divorce, unlike wills which partially revoke. If you nominated your ex-spouse years ago and never updated, they STILL get your death lump sum even after divorce.

Pension sharing orders are separate. Divorce courts can order pension sharing where your ex-spouse gets a percentage of your pension as Pension Credit. This is separate from death benefit nominations. Pension Credit members need Form DB2-PC for nominations.

Urgent action after divorce: Submit a new DB2 form removing your ex-spouse. Complete a new PN1 if you have a new partner. Timeline: Update immediately after Decree Absolute - don't wait.

Remarriage After Divorce:

Your new spouse automatically qualifies for adult dependant pension (you don't need PN1 once married). However, if you previously nominated your ex-spouse for the lump sum and haven't updated, the lump sum goes to your ex even though you remarried. You must affirmatively update DB2 to redirect the lump sum to your new spouse.

Common mistake: Assuming remarriage "resets" nominations. It doesn't - you must actively update forms.

Blended Families (Children from Previous Relationships):

There's natural tension: Your new spouse gets adult dependant pension automatically, but what about children from your first marriage?

Options include: Nominate spouse for lump sum, leave estate to children in will (spouse gets income, children get assets). Or nominate children for lump sum, leave residence to spouse in will (children get cash, spouse has housing security). Or split lump sum nomination: 50% spouse, 50% children (compromise approach).

There's no "right" answer - it depends on children's ages, financial needs, and relationship with new spouse. Discuss with family if possible to avoid post-death conflict. Document your reasoning in a letter of wishes (not legally binding but guides executor and family).

This section provides general guidance only. Blended families and divorce situations involve complex legal considerations. We strongly recommend consulting a solicitor for tailored advice.

Estranged Family Members:

NHS pension nominations can override what you'd "expect." If you nominated your sibling 15 years ago and haven't spoken since, they still get the lump sum unless you update. Protecting against estranged family: Actively nominate who you DO want, creating clear instructions.

You can't disinherit a spouse from adult dependant pension if you're married (it's an automatic right). If you're seriously estranged, consider legal separation before death (grim but relevant for some situations).

Same-Sex Couples:

Full equality exists: Married same-sex couples and civil partners have identical rights to opposite-sex couples, including automatic spouse benefits. Unmarried same-sex couples follow the same rules as unmarried opposite-sex couples - you must complete PN1 and DB2.

Children Nominations:

You can nominate children for the lump sum on DB2. If a child is under 18 when you die, money is held in trust until age 18 or paid to the child's guardian for their benefit. Children's pension (ongoing benefit) has separate rules and is paid automatically to eligible children regardless of nominations.

Complex family situation? Consider getting legal advice to coordinate pension, will, and trust arrangements properly.

Your Action Plan: Protecting Your NHS Pension and Estate

You've learned NHS pension death benefits operate separately from wills. Here's exactly what to do to protect your loved ones.

Immediate Actions (Do Today - 30 minutes):

Check if you've EVER completed NHS pension nomination forms. Login to My NHS Pension portal and check your profile and documents section. Or call NHS Pensions at 0300 330 1346. If uncertain, assume you haven't - it's better to submit new forms than risk a gap.

Identify your relationship status: Are you married or in a civil partnership? You have automatic dependant pension rights, but confirm or update your lump sum nomination. Unmarried partner? You urgently need PN1 plus DB2. Single or widowed? You need DB2 to nominate beneficiaries.

Download appropriate forms from the NHSBSA nominations page.

Priority Actions (This Week - 1 hour):

Complete NHS pension nomination forms (see Section 6 for step-by-step guidance). That's DB2 for lump sum (all members) and PN1 for partner pension (if unmarried). Submit forms to NHS Pensions. Store copies with your important documents.

Review your current will if you have one - does it coordinate with pension nominations? If you don't have a will, create one urgently. WUHLD allows you to create a comprehensive will online in 15 minutes for £49.99, includes guardianship provisions (critical for NHS staff with children), and has no subscriptions.

Within One Month:

Tell your partner or executor where your nomination forms and will are stored. Set an annual reminder to review both documents using your phone calendar or Outlook. If you have a complex situation (divorce, blended family, estate near IHT threshold), consider booking a consultation with a financial adviser or solicitor specializing in NHS pensions.

Annual Review (Every 12 Months):

Review pension nominations - is information current? Review your will - does it still reflect your wishes? Check for life changes requiring updates (see checklist in Section 8). Consider whether pension or estate value has changed significantly, which may affect IHT planning, especially approaching 2027.

After Major Life Events (Immediately):

Marriage or civil partnership: Update will, consider updating pension lump sum nomination
Divorce: Update pension nominations urgently, update will
New partner: Complete PN1 plus DB2, create or update will
Children born: Update will (guardianship priority), consider pension nomination additions
Home purchase: Update will (property provisions), consider impact on estate IHT
Significant salary increase: Death benefit increases - review if nomination strategy still appropriate

Special Considerations for Unmarried NHS Couples:

Seriously discuss marriage or civil partnership - it provides automatic pension rights and IHT protection worth tens of thousands of pounds. If not marrying, ensure both partners complete PN1 and DB2 forms nominating each other. Both partners should create wills (WUHLD costs £49.99 each, £99.98 total versus £650+ each from a solicitor). Consider additional life insurance to cover potential IHT liability from 2027. Discuss whether you need a joint bank account (evidence of financial interdependence for PN1 qualifying criteria).

Where to Get Help:

NHS Pension queries: NHS Pensions helpline 0300 330 1346, or visit NHSBSA website
Create will online: WUHLD.com - £49.99, 15 minutes, includes guardianship plus 3 estate planning guides, preview free before paying
Complex estates or IHT planning: Consider an IFA (Independent Financial Adviser) specializing in NHS pensions
Legal advice: Solicitor for complex family situations or estates significantly over IHT threshold

Final reminder: Your NHS pension is likely one of your most valuable assets - worth £100,000+ in death benefits for many staff. A 15-minute nomination form and 15-minute online will (total 30 minutes, under £50) protects hundreds of thousands of pounds for your loved ones. Do it today.

Frequently Asked Questions

Q: Can my partner claim my NHS pension if we're not married?

A: No, unmarried partners have no automatic right to NHS pension death benefits. You must nominate your partner using Form PN1 (for ongoing pension) and Form DB2 (for lump sum). Your partner must meet qualifying criteria: living together, financially interdependent, and free to marry. Without these forms, your partner receives nothing from your NHS pension.

Q: Do I need a will if I have an NHS pension?

A: Yes, you need both a will and NHS pension nomination forms. Your will controls assets like your home, savings, and possessions. NHS pension death benefits are controlled by separate nomination forms and operate outside your will. Pension nominations don't replace wills - they complement each other for comprehensive estate protection.

Q: How much is the NHS pension death in service benefit?

A: NHS pension death in service lump sum depends on your scheme section. The 1995 Section pays 2x pensionable pay, 2008 Section pays 2x reckonable pay, and 2015 Scheme pays 2x relevant earnings from last 12 months. For example, if you earn £50,000, your death lump sum would be £100,000. Additionally, your spouse or nominated partner may receive an ongoing pension of 33.75% of your pension for life.

Q: What happens to my NHS pension if I don't nominate anyone?

A: If you die without nominating NHS pension beneficiaries and have no spouse or civil partner, your death lump sum goes to your estate. This triggers probate delays (6-12 months), potential inheritance tax liability if your estate exceeds £325,000, and legal fees. Direct nomination via Form DB2 avoids these issues by paying beneficiaries directly.

Q: How does the 2027 inheritance tax change affect NHS pensions?

A: From 6 April 2027, NHS death in service benefits are being brought OUT of scope for inheritance tax (a favorable change). While private sector pension death benefits will face new IHT charges, NHS defined benefit death in service lump sums become more tax-advantaged. The spouse exemption continues - payments to spouses and civil partners remain IHT-free.

Conclusion: Protecting Your Legacy as an NHS Professional

NHS pension death benefits and your will work as a coordinated system to protect your loved ones. Understanding how they interact is essential for comprehensive estate protection.

Key takeaways:

NHS pension death benefits operate outside your will - you need both pension nomination forms AND a will
Form DB2 controls who gets your lump sum (potentially £100,000+), Form PN1 gives unmarried partners ongoing pension rights
Married couples have automatic protection; unmarried couples must actively nominate or partners get nothing
Outdated nominations from years ago still control your death benefits - update after every major life event
From April 2027, NHS death in service benefits become more tax-advantaged than private sector pensions
A 15-minute form completion protects six-figure benefits for your family

Your NHS pension is one of your most valuable assets. Combined with your salary, years of service, and the security it provides, it represents a lifetime of dedication to healthcare.

Don't let administrative oversight undermine that legacy. Your family deserves the protection you've earned.

Create your will and name your beneficiaries today. With WUHLD, it takes just 15 minutes online.

For £49.99 (versus £650+ for a solicitor), you'll get:

Your complete, legally binding will
A 12-page Testator Guide explaining how to execute your will properly
A Witness Guide to give to your witnesses
A Complete Asset Inventory document

Ready to Create Your Will?

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Legal Disclaimer: This article provides general information about NHS pensions and wills and does not constitute financial or legal advice. NHS Pension Scheme rules are complex and individual circumstances vary. For advice specific to your situation, please contact NHS Pensions (0300 330 1346) for pension-specific queries, consult a qualified financial adviser for inheritance tax planning, or seek legal advice from a solicitor for complex estate situations. WUHLD's online will service (£49.99) is suitable for straightforward UK estates. Complex situations including significant pension death benefits approaching inheritance tax thresholds, overseas assets, business interests, or complicated family structures may require professional legal advice.

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