Winning the lottery is a dream of many, but with a lottery like Set For Life, many questions can arise. Among them, one that stands out is: If you win Set For Life and then die, what happens to the prize money?
In this article, we explain the rules, payment structure, and whether any Set For Life winnings can be inherited.
What Is Set for Life?
Set For Life is a unique lottery offering, launched in March 2019 by the National Lottery. Unlike traditional lotteries, it does not pay winners a single lump sum. Instead, the top prize is a fixed monthly payment of £10,000 for 30 years, making it an annuity lottery and the first of its kind in the UK.
This lottery game also features multiple prize tiers. The second-highest tier pays £10,000 a month for one year, while the lower tiers award fixed lump sum cash prizes.
What Happens if You Win Set for Life and Then Die?
A common question given Set For Life's annuity structure is what happens if a winner dies before the 30-year payment period ends. The remaining winnings are not lost.
If a Set For Life winner dies before the 30-year annuity ends, the National Lottery pays the outstanding prize as a lump sum to the winner's estate. That lump sum is then distributed to beneficiaries according to the winner's will or, if there is no will, under the rules of intestacy.
This rule applies even if the winner dies before receiving any payments. In that case, the lump sum would include the initial £10,000 payment as well as the remaining amounts.
Can Set for Life Be Inherited?
Yes, the remaining balance of the Set For Life prize can be inherited by the winner's estate or passed on to their beneficiaries. The winner cannot transfer the instalments into someone else’s name while they are still alive.
Inheritance of winnings is governed by the rules of the National Lottery, the will of the deceased, and the law. If the winner has a will and has named a beneficiary, the money goes to that person. If there is no will, the money is distributed according to the law.
If no living relatives can be found, or if no one claims the money within the stipulated period (usually 180 days), the funds may be donated to the National Lottery’s charity fund.
Is Set for Life Transferrable?
While the remaining balance of a Set For Life prize can be passed to a winner’s beneficiaries after their death, the winnings cannot be transferred to another person while the winner is alive.
Monthly instalments are paid directly into the winner’s bank account and the National Lottery will not redirect those payments to a third party.
A winner is free to transfer money from their own bank account to someone else, but that is a private bank transaction and not a transfer of the prize by the National Lottery.
Can You Get Set for Life in a Lump Sum Instead of Paid Weekly?
Typically, Set For Life winners cannot opt for a lump sum payout. The top prize is paid as monthly instalments of £10,000 a month for 30 years.
There is one exception. If the winner dies before all payments have been made, the remaining balance is paid as a lump sum to the winner’s estate.
This ensures the remaining prize money can be passed on to the winner’s beneficiaries rather than being lost.
**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.