UK Personal Pensions can fall into two camps with regard to death benefits which are largely determined pre and post retirement. 1. Un-crystallised funds (where tax free cash and/or income has not been taken). 100% of the fund within the lifetime allowance can be paid as a lump sum to beneficiaries and with an appropriate Trust can be paid prior to probate and outside the estate for Inheritance tax purposes (read on!). 2. Crystallised benefits (where cash and/or income has or is being drawn). If the crystallised fund is an unsecured pension (income drawdown) then on death the members fund can be paid to beneficiaries minus a 35% tax charge. Or if post age 75 years on death, a 70% tax charge is made and the residual fund passes into the estate and can be chargeable to inheritance tax. Commonly a tax charge of 82% is quoted in these circumstances. http://www.gerardassociates.co.uk/