Winning Set For Life brings the promise of regular monthly payments, but questions often arise about what happens to these winnings if the winner passes away.
The outcome depends on how the prize was claimed, whether a beneficiary was nominated, how tickets were held, and whether there is a valid will. Probate can also play a part.
This guide explains who may receive any remaining payments, how nominations and probate work, what executors and beneficiaries need to know, the documents typically required, potential inheritance tax implications, what happens with joint tickets, and how things proceed if there is no will.
Read on to learn more.
Who Receives Set For Life Payments If The Winner Dies?
If a Set For Life winner passes away before all payments have been made, any remaining prize payments do not simply stop. Instead, these payments might be transferred to another person or the winner’s estate, depending on the situation.
If the winner named a beneficiary at the time of claiming the prize, this person may receive the outstanding monthly payments. If no beneficiary is named, the payments usually become part of the winner’s estate. Executors or administrators of the estate may then distribute these payments in line with the terms of the will, or according to inheritance laws if there is no will.
In some situations, the lottery operator may require certain legal documents, such as a grant of probate, before transferring payments to the right person. This process helps to ensure the winnings go to the correct individual or estate.
If you are dealing with a prize of this kind, independent legal or financial advice can help you decide the most suitable approach for your circumstances.
A simple way to make this smoother is to plan ahead, which is where nomination comes in.
How Does Nomination Work For Set For Life Winnings?
Nomination is the process where a Set For Life winner names a person to receive any remaining payments if the winner dies before all monthly instalments have been paid.
Winners are usually given the opportunity to nominate a beneficiary at the time they claim their prize. This nominated person may receive the rest of the Set For Life payments, as long as the correct steps are followed and the lottery operator is notified. The process often involves completing a form and providing details of the beneficiary.
If a winner does not nominate anyone, the remaining payments usually form part of their estate. In practice, that means the funds are dealt with under the will or, if there is no will, the rules of intestacy. Depending on the value of the estate, probate may be required before payments can resume.
With nomination covered, the next question is what happens while the estate is being confirmed.
What Happens To Monthly Payments During Probate?
If a Set For Life winner passes away, any outstanding payments may be affected by the probate process. Probate is the legal procedure that confirms who is authorised to manage the deceased person’s estate, including lottery winnings.
During this time, monthly Set For Life payments are usually paused. The lottery operator may hold any payments until the correct legal documents are provided. This helps ensure that future payments go to the right person or people, such as named beneficiaries or estate executors.
Once probate is complete and all paperwork has been reviewed, any paused payments may be released to the person entitled to receive them. It is helpful for those dealing with the estate to keep in contact with the lottery operator and provide any requested documents promptly.
Once authority is clear, attention turns to how those entitled actually make the claim.
How Can Executors Or Beneficiaries Claim Remaining Payments?
If a Set For Life winner passes away, an executor or nominated beneficiary may need to claim any remaining payments. The process is designed to ensure that funds are transferred to the rightful person.
The executor or beneficiary will usually be asked to contact the lottery operator directly. They may need to provide legal documents, such as a copy of the death certificate, the will if there is one, and proof of identity. Where probate is required, a grant of probate, or letters of administration if there is no will, may also be necessary before payments are released.
The lottery operator will review these documents to confirm the claim is genuine and to determine who should receive the ongoing payments. Only after all the required paperwork is checked and accepted may payments recommence to the correct individual or the estate.
With the process understood, it is worth knowing how tax can apply to the remaining value.
Are Set For Life Winnings Taxed Or Subject To Inheritance Tax?
In the UK, Set For Life winnings themselves are not taxed. Winners receive the advertised prize amounts without income tax or capital gains tax deducted.
However, if a winner passes away with outstanding Set For Life payments still due, these remaining payments may be treated as part of the winner’s estate. In such cases, inheritance tax might apply if the value of the estate is above the threshold set by HMRC.
Inheritance tax rules can be complex and may change over time. Independent advice from a qualified professional can help beneficiaries understand how any remaining payments are treated within an estate.
If the ticket was bought with others, there are a few extra points to consider.
Can Joint Ticket Holders Continue Payments After One Holder Dies?
If a Set For Life ticket is bought jointly, for example, by a syndicate or as part of a group, only one person is usually named as the official winner with the lottery operator at the point of claiming the prize. This named person is responsible for receiving the prize payments.
If the named winner passes away, payments do not automatically continue to other joint ticket holders. In most cases, the remaining payments become part of the deceased person’s estate. Joint ticket holders may need to manage this through the will, or under inheritance laws if there is no will.
Individuals who are part of a lottery syndicate may find it helpful to have a written agreement that sets out what should happen if a member passes away. This can clarify how winnings are shared, although the lottery operator will pay the prize to the individual officially named as the winner.
If there is no will or no nomination, the law sets out who is next in line.
What If There Is No Will Or Named Beneficiary?
If a Set For Life winner passes away without leaving a will or naming a beneficiary, the process for handling the remaining payments becomes more complex. In these cases, the payments usually become part of the deceased person’s estate.
The rules for dividing the estate are set out under UK intestacy law. This means that close family members, such as a spouse, civil partner, or children, may have the legal right to a share of the estate, including any outstanding lottery payments.
Executors or administrators will be appointed to manage the estate and provide any required documents to the lottery operator. Before payments can resume, they must ensure all legal steps have been completed.
Whichever route applies, certain documents are commonly requested.
Documents Needed To Transfer Or Claim Set For Life Payments
To claim or transfer Set For Life payments after the winner’s death, certain legal documents are typically required. These are needed to confirm the claimant’s identity and the right to receive the remaining payments.
Individuals handling the claim may need to provide the death certificate of the winner. If a beneficiary has been nominated, proof of identity and sometimes proof of address for the nominated person are often needed.
If the payments are to pass through the estate, a grant of probate or letters of administration may be requested. This document confirms who is legally allowed to deal with the winner’s estate.
Additional documents, such as a copy of the will, may be required if there are specific instructions about the distribution of winnings. The lottery operator will set out exactly what is needed during the claim process. Keeping original documents safe and submitting clear copies can help avoid unnecessary delays.
Having the right paperwork ready naturally leads to the next question: how long does it all take?
Timelines And Common Delays When Claiming After Death
Claiming remaining Set For Life payments after a winner’s death may take some time, as several steps need to be followed before payments resume. The process usually starts as soon as the lottery operator is notified and the required paperwork is submitted.
Timelines may vary depending on how quickly legal documents are gathered, such as the death certificate, proof of identity, and any probate documents. The probate process itself can sometimes be lengthy, particularly if the estate is complex or if there are disagreements among family members about inheritance.
Common delays include incomplete applications, missing paperwork, or queries raised by the lottery operator. It may also take longer if there are questions around the validity of the will or the identity of beneficiaries.
If you choose to take part in lottery draws, set spend limits that suit your circumstances and never risk money needed for essentials. If gambling starts to affect your well-being or finances, seek support early. Independent organisations such as GamCare and GambleAware offer free, confidential help.
Handled calmly, with clear communication and the right documents, remaining Set For Life payments can be transferred to the appropriate person or estate in line with the rules.
**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.