You might be wondering what it means to be a beneficiary of someone’s Will if you have just lost a loved one.
This is a common issue, especially if you do not know what your rights are, what to expect, or what to do next.
As a beneficiary, you could receive money, property, personal belongings, or other assets from the estate of someone who has left it to you in their Will (the testator).
If there is a valid Will in place, the executor is responsible for making sure the estate is distributed according to the testator’s wishes.
Types of beneficiaries
There are a few different types of beneficiaries, and it helps to understand the difference:
- Specific beneficiaries – named individuals or organisations who receive a particular item or sum of money
- Residuary beneficiaries – people who receive a share of what is left after debts, funeral costs, and specific gifts have been paid.
- Contingent beneficiaries – those who only inherit if a certain condition is met
What rights do beneficiaries have?
If you are named as a beneficiary, you have the right to:
- Know that you are a beneficiary
- Know roughly what you are entitled to (if the estate is valued and debts are settled)
- Receive your inheritance within a reasonable timeframe
However, you do not have the right to demand immediate payment or interfere with the executor’s role.
The estate must be properly administered first, which can take several months or more, depending on complexity.
Can a beneficiary see the Will?
Yes. Once probate has been granted, a Will becomes a public document.
Any beneficiary can request a copy of the Will if they have not already received one.
Before probate is granted, the Will is usually only shared with the executor(s) and solicitor involved.
Do beneficiaries pay tax on their inheritance?
Beneficiaries do not usually pay Income Tax or Capital Gains Tax when they inherit.
However, Inheritance Tax may be payable by the estate before the inheritance is passed on. The executor will handle this as part of the probate process.
If the asset you inherit increases in value before you sell it (e.g. a property), Capital Gains Tax may apply later on when you dispose of it.
Can a beneficiary refuse an inheritance?
Yes, a beneficiary can refuse all or part of their inheritance.
This is done through a Deed of Variation, which must be signed within two years of the person’s death.
There may be tax or personal reasons to consider this option.
Need help understanding your position as a beneficiary?
Dealing with a Will and inheritance can be confusing, especially when emotions are running high.
Our friendly team of Wills and Probate specialists can help you cut through the noise guide you every step of the way to understand your position as a beneficiary.
Contact us today for an initial conversation, we are happy to help.