Is the lump sum death grant paid tax free?

Death grants are usually tax free. If you don’t complete an expression of wish or have any close family, we may decide to pay it to your estate.

This may mean that it becomes subject to tax if your estate exceeds the inheritance tax limit. Paying to the estate can also be a long process, so it’s best to make a nomination if you can.

The death grant will become taxable if we:

• haven’t paid it within two years of being told about your death, and
• can only then pay it to the personal representative.