Widowed younger than expected? Navigating inheritance, pensions and protection

Losing a partner at any stage of life is devastating. When it happens earlier than you ever imagined, the emotional shock is often accompanied by sudden and complex financial decisions. In this moment, even simple tasks can feel overwhelming.

At Finura, we’ve helped many clients through this stage — untangling the immediate priorities, explaining options in plain language, and building a path forward that feels manageable. This guide outlines key steps to consider and how we can support you in making confident, informed decisions during such a difficult time.

Taking the first steps

While it may feel daunting, having certain information to hand early on will make later processes smoother:

• Gather essential documents – Will, death certificate, marriage certificate, pension statements, insurance policies, bank details, and any trust paperwork
• Notify relevant organisations – employer, banks, pension providers, insurance companies, HMRC, and any other institutions your partner had dealings with
• Check joint accounts and commitments – review direct debits, standing orders, and shared credit facilities
• Engage professional support – a solicitor for legal matters and your financial planner to help you map out the financial implications

Understanding inheritance

What happens to your partner’s assets depends largely on whether they left a valid Will:

• If there is a will – probate may be required before assets can be transferred
• If there isn’t – intestacy rules decide how the estate is distributed, which may not reflect your expectations
• Inheritance Tax – most assets passing between spouses are exempt, but what you inherit could affect your long-term tax position
• Practical considerations – property, investments, or a family business may come with ongoing management responsibilities or costs For example, from April 2026, Business Relief will be capped at £1 million for qualifying assets. Any value above this limit will be subject to Inheritance Tax at 20% (half the standard IHT rate)
• Pensions – these sit outside the estate for inheritance purposes, so their distribution follows the Expression of Wishes your partner provided to the pension provider

From April 2027, pensions will no longer be excluded from your estate for Inheritance Tax purposes, meaning they will be taxed at the standard rate for inheritance tax of 40%.

Reviewing pensions

Pensions are often among the most valuable assets in an estate, and understanding how they work can be key to your financial security:

• Workplace pensions – may pay a lump sum and/or a survivor’s pension
• Personal pensions – can be paid in full to a nominated beneficiary, often tax-free depending on the age of the person who has died
• Defined benefit pensions – typically provide a percentage of your partner’s income to you or dependent children
• Your own pensions – this is also a good moment to review your own retirement plans to ensure they remain on track

Making sure you’re protected

While dealing with loss, it’s natural to focus on the present — but reviewing your protection for the future is equally important:

• Claim existing policies – life insurance, work-based benefits, mortgage protection, or private cover
• Review your own cover – consider whether you need new or increased life and income protection
• Update your will and lasting power of attorney – make sure they reflect your new circumstances
• Check your emergency savings – ensure you have a safety net, or begin rebuilding one, to give you more security and peace of mind

How we can help

The last thing you need right now is to feel alone in navigating financial decisions. As your financial planner, we can:

• Bring all the information together so you have a complete picture
• Guide you through pension, insurance, and benefit claims
• Structure inherited assets so they are tax-efficient and sustainable
• Adjust your financial plan to reflect new goals and responsibilities
• Offer ongoing guidance — not just on paperwork, but as a trusted sounding board as life moves forward

Helpful resources

If you’re struggling emotionally, it’s important to reach out for help. These organisations can provide listening support, practical advice, and a community of people who understand:

• Cruse Bereavement Support – Free and confidential help for anyone facing bereavement
  Website: www.cruse.org.uk | Helpline: 0808 808 1677
• Mind – Mental health charity offering resources and self-care advice for those grieving
  Website: Mind Bereavement Support | Infoline: 0300 123 3393
• Samaritans – 24/7 listening service if you need to talk
  Website: www.samaritans.org | Phone: 116 123 (freephone)
• WAY Widowed & Young – Peer-to-peer support network for people widowed before the age of 51
  Website: www.widowedandyoung.org.uk

This article is offered only for general information only and is aimed at retail clients. They are not offered as, and do not constitute, financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional.

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