If a beneficiary cannot be found, an Executor should normally make reasonable efforts to trace them before distributing the Estate. If a beneficiary has died, what happens to their inheritance depends primarily on whether they died before or after the person who made the Will, and on the wording of the Will.
The Executor will normally need to take reasonable steps to trace the missing beneficiary before the Estate can be fully distributed. If they still cannot be found, the Executor may need Professional Advice about how to protect the Estate, themselves and the other beneficiaries.
If a beneficiary has died, what happens to their inheritance will depend on when they died and what the Will says: if they died before the person who made the Will, the gift may pass to a substitute beneficiary, their children, the residuary Estate or under the Rules of Intestacy; if they died after the Will-maker, it will usually form part of the beneficiary’s own Estate.
For Executors dealing with an Estate, and for anyone making or reviewing a Will, these issues matter because a missing or deceased beneficiary can delay distribution, increase cost and create personal risk for the Executor. This article explains what a beneficiary is, how missing beneficiaries are traced, when professional genealogists may be needed, what happens if a Will is missing, the Executor’s responsibilities and potential liability, time limits for claims, survivorship clauses, beneficiaries who decline an inheritance, and the Estate Planning steps that help prevent these problems.
What is a beneficiary of a Will?
A beneficiary is a person or organisation entitled to receive something from an Estate after someone dies.
That could include:
- A specific amount of money
- A property
- Investments or other assets
- Personal possessions
- A percentage of the Estate
- A share of whatever remains in the residuary estate after debts, expenses and other gifts have been dealt with
These remaining shares typically go to residuary beneficiaries.
A well-drafted Will should make it clear who is intended to benefit and, where appropriate, what they should receive.
What happens if a beneficiary cannot be found?
If an Executor cannot locate a beneficiary, they should normally make reasonable attempts to find them before distributing their inheritance.
An Executor has a responsibility to administer the Estate correctly. Assuming a beneficiary will never come forward could leave the Executor exposed if the missing person later makes a valid claim.
The appropriate action depends on the circumstances, the value of the inheritance, and the wording of the Will.
Why might a beneficiary be missing?
There are many perfectly ordinary reasons why somebody named in a Will may become difficult to locate.
The family has lost contact
Families can lose touch over many years.
A beneficiary may have moved elsewhere in the UK, gone overseas, changed their surname or simply stopped communicating with other family members.
In some cases, they may not even know that the person has died or that they have been left an inheritance.
Contact details are out of date
A Will could have been written many years before somebody dies.
Addresses, names and family circumstances can all change during that time.
This is one reason reviewing your Will regularly is so important.
The beneficiary is not clearly identified
Broad descriptions can sometimes create uncertainty.
For example, wording referring generally to “my grandchildren” may require an Executor to establish exactly who falls within that description.
Clearly identifying the people you intend to benefit can make administering your Estate considerably easier.
There is no valid Will
If somebody dies without a valid Will, they are said to have died intestate.
Their Estate is then divided under the Rules of Intestacy rather than according to their personal wishes.
This may mean identifying relatives with whom the deceased had little or no contact.
In more complex families, considerable research may be needed to identify everyone legally entitled to inherit.
For example, a surviving spouse or surviving children may receive the benefits set by law.
How do you trace a missing beneficiary?
There is no single method for finding a missing beneficiary.
The Executor may begin by making straightforward enquiries, including:
- Speaking to relatives and friends
- Checking previous addresses
- Searching available public records
- Looking at electoral information
- Reviewing birth, marriage and death records
- Investigating possible name changes
- Looking at wider family connections
In many cases, these enquiries may be enough.
Where they are not, specialist tracing services may be required.
Can a professional Genealogist find a missing beneficiary?
Professional Genealogists, sometimes known as probate researchers or heir hunters, can help trace missing beneficiaries and establish family relationships.
They can be particularly useful when someone has died without a Will, and the Administrator needs to identify everyone who may have a legal entitlement to the Estate.
Their work may involve reconstructing a family tree using historical and official records.
This can uncover relatives whom the immediate family did not know existed and provide evidence of the research undertaken before the Estate is distributed.
What if the Will itself cannot be found?
Sometimes the problem is not finding a beneficiary. It is finding the Will.
An original Will may have been written many years earlier and stored with a Solicitor, Will Writer, professional storage provider or among the deceased person’s personal papers.
A search may therefore include:
- Checking paperwork and records at the deceased person’s home
- Asking close family members
- Checking with the National Will Register Service
- Contacting Solicitors or Will Writers previously used
- Checking professional Will storage arrangements
Finding the latest valid Will is extremely important.
Without it, an Estate could potentially be dealt with under the Rules of Intestacy even though the person had previously recorded very different wishes.
This is why Secure Storage and making sure your Executors know where your Will is held can be such an important part of Estate Planning.
Can an Executor distribute an Estate if a beneficiary cannot be found?
Potentially, but an Executor should not simply distribute the missing beneficiary’s inheritance without carefully considering the consequences. Beneficiaries will usually need to wait for probate before they can receive their inheritance. The probate process can take months, which may delay distribution, although beneficiaries may sometimes be given an estimate of what they are likely to receive.
If reasonable attempts to locate the beneficiary have failed, there may be several options.
The inheritance can be retained
The missing beneficiary’s share may be kept aside while further attempts are made to find them.
This protects their entitlement but can prevent the Estate from being completely finalised.
If the beneficiary remains missing for many years, this may become impractical.
The Estate may be distributed with appropriate protection
There may be circumstances where distributions can be made to other beneficiaries while arrangements are put in place to deal with the possibility that the missing person later appears.
This requires careful consideration.
If other beneficiaries receive money that should ultimately have gone to the missing person, recovering it years later may be difficult.
Missing beneficiary insurance may be available
Specialist indemnity insurance can sometimes provide protection where an Estate is distributed and a missing or previously unidentified beneficiary subsequently comes forward.
Whether insurance is appropriate will depend on the circumstances and the searches already undertaken.
Professional Advice should be obtained before an Executor decides how to proceed. Beneficiaries are not normally entitled to see the Will until probate is granted, which is part of the overall process.
Can an Executor be personally liable for a missing beneficiary?
Potentially, yes.
Executors and Administrators have responsibilities when dealing with somebody’s Estate.
If an Estate is distributed incorrectly and somebody with a valid entitlement subsequently comes forward, the Personal Representatives responsible for the distribution could potentially face a claim.
This is why Executors should be able to demonstrate that they took appropriate steps to identify and locate beneficiaries before distributing the Estate.
How long does a beneficiary have to claim an inheritance?
A beneficiary’s entitlement does not automatically disappear simply because an Executor has been unable to locate them.
Different limitation periods can apply depending on the circumstances and the type of claim being made.
A missing beneficiary could therefore potentially appear long after an Estate has otherwise been administered.
Executors dealing with a missing beneficiary should obtain Professional Advice about the appropriate steps to take rather than assuming that enough time has passed to distribute the inheritance elsewhere.
What happens if a beneficiary or residuary beneficiary of a Will has died?
The first question is:
Did the beneficiary die before or after the person whose Will it is?
The answer can significantly affect what happens to the inheritance.
What happens if the beneficiary dies before the person who made the Will, or dies before the testator?
If a beneficiary dies before the person who made the Will, the gift to them may fail unless the Will contains instructions about what should happen instead or specific legal provisions apply. The executor may also need to confirm the relevant dates of death to establish who became entitled to inherit.
Depending on the circumstances, the inheritance could:
- Pass to an alternative beneficiary named in the Will
- Pass to the deceased beneficiary’s descendants
- Fall into the remainder of the Estate
- Ultimately pass under the Rules of Intestacy
This is why a good Will often considers not only who you want to inherit, but also what you want to happen if they die before you.
Naming alternative beneficiaries can provide much greater certainty.
What happens if a beneficiary dies after the person whose Estate it is?
If the beneficiary was alive when the person died but subsequently dies before receiving their inheritance, the position can be very different. If this happens during probate or the estate distribution process, it can extend timelines because the entitlement may need to be dealt with through the beneficiary’s estate.
Their entitlement may form part of their own Estate.
It would then normally be dealt with according to their Will or, if they did not leave a valid Will, under the Rules of Intestacy.
This can sometimes mean the inheritance ultimately passes to somebody the original person never expected to benefit.
The exact position will depend on the wording of the Will and the circumstances involved.
What is a survivorship clause in a Will?
Some Wills include a survivorship clause.
This requires that the beneficiary survives the person making the Will for the stated period before becoming entitled to their inheritance.
A common period is 28 days. If a beneficiary dies 28 days after the testator, their gift passes to their estate.
These clauses can be particularly useful where two people die within a short period of one another because they help determine which provisions in the Will should take effect. A survivorship clause may prevent gifts from passing through two estates, avoiding assets moving in quick succession if a beneficiary predeceases the testator or dies soon after.
Again, the precise wording of the Will is important.
What happens if a beneficiary does not claim their inheritance?
A beneficiary does not normally have to accept an inheritance simply because it has been left to them.
There may be personal, family, financial or tax reasons why somebody would prefer not to receive it.
Two possible approaches are a disclaimer and a Deed of Variation.
Can a beneficiary refuse an inheritance?
Yes, a beneficiary may be able to formally disclaim an inheritance.
A disclaimer normally means giving up the entire gift concerned rather than accepting part of it and refusing the remainder.
Once it has been validly disclaimed, the beneficiary will generally lose their entitlement to the gift.
They also do not normally get to decide who receives it instead.
The terms of the Will or the Rules of Intestacy will determine where it passes next.
Professional Advice should be obtained before disclaiming an inheritance because accepting or dealing with part of a gift may affect the ability to disclaim it later.
Can an inheritance be passed to somebody else?
Sometimes.
A Deed of Variation can potentially allow somebody who has inherited from an Estate to redirect some or all of their inheritance to another person.
For example, a parent who inherits may decide that they would prefer some of the inheritance to pass directly to their children.
A Deed of Variation has specific legal and tax requirements. If particular tax treatment is required, it generally must be completed within two years of the person’s death.
Professional Advice should therefore be taken before making any changes. Beneficiaries do not normally pay inheritance tax on assets they receive, as inheritance tax is usually settled by the estate before distributions are paid.
How can you prevent problems with beneficiaries in your Will through estate planning?
It is impossible to predict everything that might happen in the future, but good Estate Planning can make life considerably easier for the people dealing with your Estate.
Review your Will regularly
Your family, finances and relationships change.
A Will that reflected your wishes ten years ago may no longer achieve what you want today.
Clearly identify your beneficiaries
Make it as easy as possible for your Executors to establish who you intend to benefit.
Consider alternative beneficiaries
Think about what should happen if a primary beneficiary dies before you, so named secondary beneficiaries can step in.
This is especially important where a spouse or child is expected to inherit.
Keep your Will securely stored
Your Executors need to be able to find the original Will when it is required.
Review your Estate Planning after major life events
For instance, marriage, divorce, bereavement, births, changes in relationships and significant financial changes can all affect your plans.
Key Takeaway
If a beneficiary cannot be found, an Executor should normally make reasonable efforts to trace them before distributing their inheritance. If a beneficiary has died, what happens to their inheritance will depend on whether they died before or after the person whose Estate is being administered and on the wording of the Will.
Both situations can cause delays, additional costs and uncertainty, which is why keeping your Will and wider Estate Planning up to date is so important.
Is your Will still doing what you want it to do?
A Will should not simply be written and forgotten about.
As your family and circumstances change, it is worth checking that your Will still reflects:
- Who you want to benefit as the main beneficiary and any backup options
- Who should inherit if one of your beneficiaries dies before you, including any secondary beneficiaries
- Who you want to act as your Executors
- How your Estate should be distributed
- Whether your wider Estate Planning remains appropriate
At Redwood, we help families review their Wills and Estate Planning so that their wishes are clearly recorded, and the people responsible for dealing with their Estate have clear instructions to follow.
If your Will has not been reviewed for several years, or your circumstances have changed since it was written, a Will Review can help establish whether your existing arrangements are still right for you.
