This is a one-off payment of £1,000, payable on the death of a pensioner who was a retired employee, to help towards immediate funeral expenses.
It’s paid by the Trustee, which means there isn’t any liability for Inheritance Tax.
If it’s needed to cover funeral costs, the Trustee will pay it directly to the funeral director. If funeral expenses are already provided for, the benefit will be paid to a beneficiary or beneficiaries chosen by the Trustee.
When we write to your next of kin, we’ll include a bereavement grant form.