Death Benefits

State Pension

Your spouse or civil partner is below State Pension Age

On reaching their State Pension Age (SPA), your spouse or civil partner would normally qualify for a Basic State Pension (BSP) based on their own National Insurance Contribution record. If they do not qualify for a full BSP, this can be improved in one of two ways.

If your spouse or civil partner became entitled to a Widowed Parent's Allowance in the event of your death and was receiving this on reaching SPA, they could, courtesy of your NICs, qualify for a BSP at the same rate as the basic pension in their Widowed Parent's Allowance. This when aggregated with any pension due in his or her own right however, cannot exceed the maximum pension payable to an individual (£97.65 per week in the tax year 2010/11).

If they were not in receipt of Widowed Parent's Allowance on reaching SPA, and have not remarried, they could qualify for a BSP, or top up their own BSP, by substituting your NI record for theirs for either the period of the marriage or from the start of their working life up to the date they become widowed. As before, the amount payable cannot total more than the maximum payable to an individual person.

Your spouse or civil partner may also be entitled to a share of any Additional Pension you have built up as long as they receive a Bereavement Allowance or Widowed Parent's Allowance when over 45. The amount that can be inherited will be between 50% and 100% of your Additional Pension depending on your date of birth, and will be reduced if, at the time you died or they stopped being entitled to Widowed Parent's Allowance, they were under 55. If they are also entitled to Additional Pension of their own, the total amount cannot exceed the maximum amount payable for a single person.

Your spouse or civil partner is above State Pension Age

Your spouse or civil partner could qualify for a Bereavement Payment if you are not entitled to a State Pension when you die.

In the case of a widow, they can in the event of your death, claim the BSP you were entitled to (or would have been entitled to) at the time of your death. The entitlement would be based on your NI record. If she is entitled to any BSP of her own, the total basic pension payable cannot exceed the maximum BSP payable to an individual person (i.e. £97.65 a week).

In the case of a widower/civil partner, they can claim a basic pension equal to your entitlement only if you are also over SPA at the time of your death. If you are under SPA on death, your widower or civil partner will not be able to claim a pension in respect of you unless they will reach SPA on or after 6 April 2010. They may however be able to substitute periods from your NI record for theirs if this would increase any pension being received due to their own NI contributions. Again, any entitlement cannot exceed the maximum pension payable to an individual person.

Your widow/widower or civil partner may also be able to claim a share of any Additional Pension you have built up (but as for basic pension, this currently only applies if you are also over pension age at the time of your death) . The amount that can be inherited cannot be below 50% of your Additional Pension and will depend on your date of birth.

Bereavement Payment

Your spouse or civil partner may be entitled to a bereavement payment immediately on your death but if not they should still benefit come their SPA.

There are three bereavement benefits available:

• Bereavement Payment;
• Bereavement Allowance; and
• Widowed Parent's Allowance.

All of these are based on your NIC record. Your age is irrelevant.

The Bereavement Allowance

The Bereavement Allowance is a series of taxable weekly payments, lasting no more than 52 weeks. The current maximum rate is £97.65 a week (2010/11).

To qualify, your spouse or civil partner must be between 45 and SPA at the date of your death and not bringing up children. You must also have paid at least one qualifying year's NICs (either Class 1, 2 or 3). For the maximum rate of benefit to be paid, you need to have paid qualifying NICs for 90% of your working life, i.e. from age 16 to the tax year before your death, and your spouse or partner must be aged 55 or over at the date of your death.

The Bereavement Payment

The Bereavement Payment is a one off, tax-free, lump sum of £2,000.

To qualify you must have paid:

• before 6 April 1975 - at least 25 Class 1 (paid by employees and their employer), Class 2 (paid by the self-employed), or Class 3 (voluntary) NI contributions; or
• after 6 April 1975 - in any one tax year, 25 weeks of Class 1, Class 2 or Class 3 NI contributions.

The Widowed Parent's Allowance

This is a taxable benefit for widows or widowers who are under SPA and who have at least one qualifying child for whom they are entitled, or treated as entitled, to Child Benefit.  It can also be paid to a widow who is expecting your child at the time of your death. The current maximum amount of WPA is £97.65 a week (2010/11) plus a share of any additional State Pension you have built up. The share of additional pension payable will be between 50% and 100% depending on your date of birth. 

To qualify, you need to have paid at least one qualifying year's NI contributions.  For the maximum rate of benefit to be paid, you need to have paid NI contributions for a minimum of 90% of your working life, i.e. from age 16 to the tax year before your death.

In the event of your death, the state benefits your spouse or civil partner may receive when they reach their SPA are summarised below.

Q & A's