Usually, pensions can be passed out of the estate so they won’t be subject to inheritance tax. For this to happen, you’ll usually need your pension to be set up under a discretionary trust. This means that your pension provider has the right to decide who receives any money from your pension after you die.
While most pensions are set up in this way, not all are. So it’s best to speak to a financial adviser if you’d like help with your pension for inheritance tax reasons.