What is a pension death-benefit nomination?

It is the member’s expression of wish telling the scheme administrator who they would like to receive their pension death benefits. In a discretionary scheme it guides — but does not bind — the administrator’s decision, which is what has kept the fund outside the estate for inheritance tax.

Why does a nomination affect whether a beneficiary can use drawdown?

A non-dependant can only be offered nominee’s flexi-access drawdown if they are an individual the member nominated (or, where there is no dependant and no nominee, one the scheme administrator nominates). Without a nomination, a non-dependant the member would have chosen may be restricted to a lump sum instead of keeping the fund in drawdown.

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Part of the Pensions, IHT & death benefits guide →

Pension death-benefit nominations: why the expression of wish matters

The form that decides who receives a pension, and how. Why discretion keeps a fund flexible, and how a missing nomination can close off drawdown for the people a member would have chosen.

Based on HMRC’s Pensions Tax Manual (PTM072000, PTM073000).

5 min read · Last reviewed 19 Jun 2026

Who receives a pension on death, and in what form, often turns on a single form: the nomination, or “expression of wish”. It is easy to treat as a formality. It is not — it shapes both the tax position and the options open to the people left behind.

Discretion, and why it matters

Most modern pensions pay death benefits at the scheme administrator’s discretion, guided by the member’s nomination but not bound by it. That discretion is the very feature that has historically kept the pension outside the member’s estate for inheritance tax — the member never had a right to direct the money, so it was not theirs to give away (PTM073000). For deaths on or after 6 April 2027 that estate treatment changes, as set out in pensions and inheritance tax from April 2027; the discretionary mechanics, though, are unchanged.

What a nomination unlocks: drawdown, not just a lump sum

The nomination does more than name a recipient — it can decide how they may take the benefit. A dependant (broadly a spouse, civil partner, or a child under 23) can always be offered a dependant’s drawdown. A non-dependant — an adult child, say — can be offered nominee’s flexi-access drawdown only if they are an individual the member nominated. Where there is no dependant and no nomination, the administrator can nominate someone; but where a dependant exists, an un-nominated non-dependant can be shut out of drawdown and left with a lump sum (PTM072000).

That is the practical cost of a stale form: not that the money goes to the wrong person — the administrator’s discretion usually prevents that — but that the right person may be unable to keep the fund in the tax-efficient drawdown wrapper, and a successor may be unable to inherit the drawdown in turn.

What this guide does not do

Whether a nomination should be made, changed, or directed to a trust rather than an individual is an advice question, and it interacts with the two-year rule and the death-benefit tax rules — a lump sum to a trust, for instance, can attract the 45% charge. This guide explains how nominations work; it does not recommend how to complete one. For planning and illustration only; not advice.

PTM072000 (nominations · beneficiary drawdown) · PTM073000 (death benefits overview)

Common questions

What is a pension death-benefit nomination?: It is the member’s expression of wish telling the scheme administrator who they would like to receive their pension death benefits. In a discretionary scheme it guides — but does not bind — the administrator’s decision, which is what has kept the fund outside the estate for inheritance tax.
Why does a nomination affect whether a beneficiary can use drawdown?: A non-dependant can only be offered nominee’s flexi-access drawdown if they are an individual the member nominated (or, where there is no dependant and no nominee, one the scheme administrator nominates). Without a nomination, a non-dependant the member would have chosen may be restricted to a lump sum instead of keeping the fund in drawdown.

Sources & grounding

Discretionary distribution + the expression of wish (nomination): most modern schemes pay death benefits at the administrator’s discretion, guided by but not bound by the member’s nomination — the feature that has historically kept the fund outside the estate for inheritance tax (changing for deaths on/after 6 April 2027, see the IHT spoke). PTM073000.
Who can take what: a dependant can always be offered beneficiary (dependant’s) drawdown; a non-dependant can be offered nominee’s flexi-access drawdown ONLY if they are an individual nominated by the member, or — where there is no dependant and no nominee — nominated by the scheme administrator. Without a nomination, a non-dependant the member would have chosen may be limited to a lump sum. A successor continues drawdown after a beneficiary dies. PTM072000 / PTM073000.
No figures: this spoke is conceptual (nominations + beneficiary options), so it carries no worked example and no calculator; it links the LSDBA calculator and the two-year-rule / IHT spokes for the tax consequences.

For planning and illustration purposes only. Verify all inputs against source documents. This explainer does not constitute financial or tax advice.