Are you the beneficiary of a will? Here’s what you need to know.
Helen Notter, Head of Wills and Probate at Holden Smith
How do you know if you are a beneficiary of a will? Will it cost you to be a beneficiary? And what happens if someone dies without making a will? We catch up with Helen Notter, Head of Wills and Probate, to find out.
How do I know if I am the beneficiary of a will?
Helen: If someone has left a will and you are a beneficiary of an estate, you would usually be contacted by the executor, or the solicitor the executor has instructed, to notify you that you are a beneficiary. The executor is an individual appointed to administer the last will and testament of a deceased person, and their main duty is to carry out the instructions to manage the affairs and wishes of the deceased.
Once the executor of the will has applied for Probate (the legal and financial processes involved in dealing with the assets of a person who has died), the will becomes a public document and you can obtain a copy of it to check if you are a beneficiary of the estate.
As a beneficiary of a person’s will, what documents do I need to present before I can receive my inheritance? What checks are carried out?
Helen: Often, as a beneficiary you will need to provide documents such as a driving license and passport to verify your identity and address. A bankruptcy search will also be carried out by the solicitor before any inheritance is paid to you.
What costs someone might I incur when I inherit from a will?
Helen: The executor of the estate will be responsible for gathering in all the assets of an estate. Before the estate is distributed, costs such as funeral, debts, legal fees, executors’ expenses and inheritance tax (if applicable) are paid. The balance is then paid out to the beneficiaries of the will/intestacy. As a beneficiary, you do not usually incur costs personally.
Usually, a gift in a will is left “free of tax”, however on some occasions, the will may state that the gift is “subject to tax”, in which case any inheritance tax due will be paid from the gift before you receive the balance.
How long after becoming a beneficiary would an inheritance be paid? Is there anything that might slow things down?
Helen: If the estate is simple and there is no property involved, matters can usually be completed within around six months. Where estates are more complex, for example where inheritance tax is payable, you may be looking at around 12 – 18 months. If you are a beneficiary, you are often able to receive interim distributions if the solicitor is holding some monies on their client’s account before the estate is finalised. If someone is contesting the will – or challenging it - then the process can take much longer if matters end up at court. If there is a property to sell, this could also delay matters.
If someone dies without making a will, who can make a claim on their estate?
Helen: If this is the case, you may still inherit under the Rules of Intestacy. When someone dies without a valid will, they become what is known as intestate, and their estate must be shared out according to the rules of intestacy, the order of which is:
Spouse or civil partner
children/grandchildren
parents
brothers and sisters
grandparents
uncles and aunts.
If there is any person in the class above you, then you would not inherit. For example, if your brother died and your mother was still alive but your father had died, your mother would inherit the entire estate.
What if I haven’t been named as a beneficiary or under the Rules of Intestacy but I believe I am entitled to make a claim?
Helen: If you haven’t been named as a beneficiary in a will or under the Rules of Intestacy, a solicitor can help you establish whether you are able to make a claim under the “Inheritance (Provision for Family and Dependants) Act 1975”. Under the Inheritance Act, there are certain categories of people who may be able to make a claim against an estate. These are: spouses, ex-spouses (who have not remarried), cohabitees, children, people treated as children, and dependants.
Why is it so important for us to make a will?
Helen: It is especially important that you make a will. You can appoint executors and guardians if you have any minor children, and you can also appoint Trustees to look after your children’s inheritance if they are minors when you die. You can also state at what age your children would inherit.
Under the Rules of Intestacy, your children would inherit at 18, but you may prefer to say 21 or 25, for example. If you wish to leave any gifts to charity or friends or family, you can state this in your will. If you have a step-child who you consider your own, it is important to make a will, as under the intestacy rules they would not be classed as your child and would not automatically inherit, perhaps leaving them having to make a claim against your estate. This could be costly and upsetting at a time of grief.
