What Happens If You Win Set For Life & Then Die?

On this page, we delve into the intriguing and often misunderstood world of annuity lotteries, such as the Set For Life lottery in the UK.

Specifically, we aim to answer one burning question: What happens when a Set For Life lottery winner dies before they’ve received all their winnings?

What Is Set For Life?

The National Lottery’s Set For Life is an annuity lottery game based in the UK.

Unlike traditional lottery games that offer one-time lump sum payments, Set For Life offers its top-tier winners a guaranteed monthly income of ยฃ10,000 for 30 years.

This unique payout structure has raised some interesting questions, especially concerning what happens to the prize money if a winner dies before receiving all their payments.

Set For Life Rules: What Happens If You Die?

According to Camelot, the organisation running the National Lottery, if a Set For Life winner dies after the monthly prize payments have begun, their estate receives a lump sum.

This lump sum is equal to the full amount that Camelot paid for the annuity policy minus any monthly payments already given to the winner.

If the winner dies before the monthly payments have started, their estate will receive a lump sum equal to the price Camelot would have paid for the annuity policy.

This sum also includes the initial validation payment of ยฃ10,000 that would have been paid by Camelot.

Does Set For Life Die With You?

No, the winnings from Set For Life do not die with the winner. As previously mentioned, if a winner dies before they’ve received all their payments, the remaining money is paid to their estate as a lump sum.

However, it’s important to note that National Lottery prizes are not transferable. This means that the winnings cannot be willed to someone else for the remainder of the time.

Can You Transfer Set For Life Winnings?

Unfortunately, you cannot transfer your Set For Life winnings. The rules stipulate that the annuity prize is strictly non-transferable.

So, if a winner dies after the monthly payments have started, the prize payments stop, and the remaining amount is paid to the winner’s estate as a lump sum.

Critical Factors to Consider

There are several important factors to consider when discussing the continuation of Set For Life winnings after a winner’s death.

Annuity Policy

The Set For Life prize is paid in the form of an annuity policy. The cost of this policy and, therefore, the amount that the winner’s estate would receive as a lump sum if the winner dies varies depending on the personal circumstances of the winner.

For instance, a younger, healthy winner would likely have a higher annuity policy cost compared to an older winner or someone with a terminal illness.

Tax Implications

In the UK, all National Lottery prizes, including the Set For Life top prize, are tax-free. This means that winners receive the full ยฃ10,000 each month, irrespective of their tax bracket.

However, the lump sum received by a winner’s estate upon their death may have inheritance tax implications.


The ยฃ10,000 monthly prize is a fixed amount and does not change with inflation. This means that as the years go by, the real value of the ยฃ10,000 monthly payments may decrease.

The Bottom Line

The Set For Life lottery game provides a unique opportunity for winners to secure a steady income stream for 30 years.

However, the rules surrounding what happens to the prize money after a winner’s death can be complex. It’s essential for potential players and beneficiaries to understand these rules to avoid any surprises.

As always, if you need further clarification, it’s best to consult with a legal or financial professional.

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