What Happens if a Beneficiary Dies?
Probate is lengthy, and beneficiaries may not receive the inheritance for months after their loved one's death. This sparks a common thought among many executors who are responsible for administering estates - what if a beneficiary dies before receiving his inheritance? To better understand who inherits if a beneficiary dies before or after the testator, read on.
What is a Beneficiary?
A beneficiary is someone who has been left a gift from a deceased person in their Will. The gift will be highlighted within the Will or given under the Rules of Intestacy if no Will exists. In the UK, it’s common for a beneficiary to also be an executor, meaning they must administer the estate before receiving their share.
What Gifts Can a Beneficiary Receive?
A beneficiary commonly receives three types of gifts in a Will:
- Specific Gift: Such as a piece of jewellery left to a certain individual
- General Gift: Such as a lump sum of money from no particular place left to a certain individual
- Demonstrative Gift: Such as a lump sum of money, but from a particular place (like a savings account or funds from a house sale), left to a certain individual
Survivorship Clause
A survivorship clause makes gifts to a beneficiary conditional upon whether they survive the testator by a specific period, which is typically 28 days. If a beneficiary predeceases the testator before the specified period (say 28 days), they may be classified as having died before the testator.
What if a Beneficiary Dies Before Receiving His Inheritance?
Probate can take a while, and it’s not uncommon for a beneficiary to die before receiving their inheritance. If this happens, the outcome will depend on whether they’ve died before or after the testator.
What Happens if a Beneficiary Dies Before the Deceased?
If a beneficiary of a Will dies before the deceased (the one whose estate is being administered), their gift will usually lapse (fail). Unless stated otherwise in a survivorship clause, the gift will likely go back into the testator's estate and be passed on to any surviving secondary beneficiaries.
However, under Section 33 of the Wills Act 1837, if a gift is left to a child who passes away before receiving it from their parent (the deceased), it may be passed on to the child's surviving children (the grandchildren of the deceased), that's if any are left. Grandchildren inheriting what their parents would have is known as the right of representation.
What Happens if a Beneficiary Dies 28 Days or More After the Deceased?
If a beneficiary dies 28 days or more after the deceased, the gift is still given as normal. However, because they have passed away, the gift will be passed on according to the wishes stated in their own Will. If the beneficiary does not have a Will of their own, the gift is distributed under the Rules of Intestacy.
Secondary Beneficiaries
Secondary (contingent) beneficiaries may receive assets from an estate if the primary beneficiary dies before the testator. Appointing secondary beneficiaries is advisable to ensure your estate is distributed in line with your final wishes, especially in the unfortunate event that your main beneficiary dies. Your trusted solicitor will be able to help choose and appoint secondary beneficiaries within your Will upon creation.
Managing Multiple Estates
In some cases, multiple estates have to be managed at once. This could occur if a spouse dies and leaves their estate to the remaining spouse, who then dies before receiving their inheritance. If this happens, executors will be required to manage both estates. While this can be complex, the estates may be linked together to simplify the overall process.
Do You Require Expert Legal Advice?
If you require trusted legal assistance in creating a Will or need general information about what happens if a beneficiary dies before receiving his inheritance, we can help. At Bell Lamb & Joynson, we have a team of dedicated wills and probate solicitors who are on hand to help with all aspects of estate planning and distribution. We’re highly experienced, having worked alongside many clients facing issues with beneficiaries, death, and inheritance.
Contact our supportive wills and probate solicitors today to find out how we can assist you.