Dealing with the upheaval of losing a loved one is something a lot of us will go through in our lives. When you’re thrust into the law of probate, it can add an extra layer of complexity to the grieving process, especially if you’re hearing legal terms for the first time. If you’ve been named as a beneficiary of a Will, you may have questions about what that means, and about the distribution of the person’s estate.
One of the best ways to get started is to have a general understanding of the process, the people involved, and what to do if you’re running into trouble along the way. If you’ve landed on this page, you’re either looking for general information, or you’re a beneficiary looking to gain a deeper understanding of your rights. Either way, you’re in the right place. Let’s get into the basics.
What is a Beneficiary of a Will?
A beneficiary of a Will is someone who will inherit something from a person who has died. If someone has left a Will, the person/s who will inherit the property, possessions, and assets will be outlined within the Will.
Essentially, all the things that can be left are a type of gift, but these can come in different forms. These include, but are not limited to:
- General – a general gift tends to be a sum of money. If the Will does not state where the general gift should come from, it can be sourced from left over money in bank accounts. Alternatively, assets may need to be sold so the beneficiary can receive their inheritance.
- Demonstrative – unlike general gifts, a demonstrative gift states where the money should come from. For example, if someone was to leave their child £2,500, the Will would need to outline whether that should come from bank accounts or other assets that need to be sold. If there isn’t enough money in the specified places, the money can be sourced from somewhere else.
- Specific – a specific gift left to someone must be identifiable. A common example is passing down a wedding ring. If, for whatever reason, the gift no longer exists at the time of death, there will simply be nothing to receive.
- Residuary – a residuary beneficiary is a person/s that is entitled to what is left over from the estate. For example, once funeral costs, general and demonstrative gifts and Inheritance Tax have been covered, the remainder of the estate will be left to residuary beneficiaries, which will be outlined in the Will.
If there’s a case that there isn’t enough money left in the estate to fulfill the wishes of the deceased, in the first instance residuary beneficiaries will lose their share as there will not be any money left over. After that, general beneficiaries would lose their share. Failing that, demonstrative and specific beneficiaries will also lose their share.
The best way to make sure your estate is distributed the way you want it to be after you die is to write a Will. .
Who are the Beneficiaries if There’s No Will?
In the unfortunate circumstances that someone dies suddenly, or they die and their relatives aren’t sure if they have left a Will, the first port of call is to find out if they have left a Will.
If a Will hasn’t been left, the estate will be distributed in accordance to the rules of intestacy, which is a predetermined order of who will inherit from the estate. This is outlined in The Administration of Estates Act 1925 and the Intestates’ Estates Act 1952.
It’s worth noting that the rules of intestacy do not take into consideration the complexities of modern families. For example, if there is no Will, unmarried couples aren’t automatically entitled to each other’s estates. In some cases, the estate could go to family members the deceased wasn’t in contact with.
This can be particularly distressing if a surviving partner, or other family members are relying on the estate for living costs and accommodation. This is why it’s important to review a Will regularly and update it if there are any significant life changes. Keeping a Will up to date can help to avoid added stress for loved ones, such as having to challenge probate.
Once you’ve determined whether someone has a Will or not, you can figure out your next steps. Understandably, this can be a very stressful process, which is why having a team of probate lawyers in your corner can make all the difference.
Who Contacts the Beneficiaries?
Within the process of probate, there are a few different roles. This article focuses on beneficiaries, but there’s another major role, which can be one of the determining factors in how smoothly the process goes. That role is the executor.
If someone has left a Will, they will name a person/s to be the executor. This person/s will be responsible for the distribution of the deceased’s estate.
There is no fixed rule when the executor should contact the beneficiaries, but in general, clear and transparent communication is advised . There is also a general understanding of something called ‘Executors Year’, which is the goal for an executor to settle an estate within a year. Beneficiaries can use this as a guideline for contact too.
Each estate is unique, which means the process and amount of contact between the different parties varies. There are estate administration stages where it’s common for the executor to contact the beneficiaries. These include, but are not limited to:
- When a grant of probate is obtained – before the process of probate is started, an executor has to gain something called a grant of probate. This is official documentation that gives someone the ability to deal with the deceased’s estate. If no Will has been left, a letter of administration will be needed. When these documents are obtained, it’s a good time to talk to the beneficiaries and let them know that the process is now underway.
- For any important updates – this can include things like delays, if there are issues with the amount of money left, or just when things are progressing. Again, although the executor doesn’t have to get in touch during these times, it’s good practice to keep everyone up to date.
- To prevent claims against the estate – regular contact between the executor and beneficiaries can help prevent the Will being contested. Communicating delays and challenges can help to reassure beneficiaries and prevent them feeling like they need to take legal action.
- When distribution is about to happen – when probate is in its final stages, it’s likely that the executor will get in touch to let everyone know they’re about to receive their inheritance. This is also a good time to check they have the correct information for the beneficiaries, such as their bank account details.
- Upon request – if a beneficiary has concerns or requires an update, they have the right to request information. As long as the requests are reasonable, there shouldn’t be an issue with the executor providing them with the information.
For some people, they need to receive their inheritance to meet their financial needs. This is especially true if the person was financially dependent on the deceased. Delays and issues with executors can be a huge cause of stress. Familiarising yourself with the legal rights of a beneficiary can help you make a more well-informed decision if you feel you need to act.
What Rights Does a Beneficiary Have?
Beneficiaries don’t have as many entitlements as you might assume. In short, a beneficiary of a Will has the right to know:
- If they’re in the Will
- What they’ve inherited
- The full amount of inheritance they will receive
In saying that, until a grant of probate is issued, even these things will remain confidential. If issues are to arrive down the road, such as there being a disparity between what’s in the Will and the size of the estate, the executor could risk misleading the beneficiaries. This is why it makes sense to give the whole process time.
That doesn’t mean they can’t request information. Like stated earlier, clear communication throughout the process between the executor and the beneficiaries is good practice, and the beneficiaries are entitled to be kept up to date during the process.
Can an Executor be Removed from Their Role?
There are some common complaints that beneficiaries have, such as delays, a lack of information or not revealing important information about accounts.
There are some circumstances when beneficiaries have concerns with the person dealing with distributing the estate. In some more extreme circumstances, an executor can be removed from their position. These include:
- If they have recently been convicted of a crime after they were appointed to the role
- If there’s a conflict of interest
- If they currently do not have the mental of physical capacity to perform their duties
- If there has been inappropriate conduct whilst managing the estate – such as stealing from it or failing to keep records etc.
If, for whatever reason, you’re having issues with the person who has been nominated as an executor, or any other issues during the probate process, it’s important to get legal advice. That’s where we come in.
How We Can Help
At PM Law, we understand the stress and upheaval that grief can cause. Dealing with things like someone’s estate during this time can feel like an added burden on top of everything else. Having a team of experienced lawyers in your corner can make all the difference.
We deal with each unique case sensitively. So, whether you’re looking to write a Will, need help with executor responsibilities, or are running into difficulties as a beneficiary, we’re here to help. Contact our Wills, Trust and Probate Team today, and see how we can help you.
