Support for beneficiaries

It is completely natural to have questions when you find out you will benefit from the estate of a family member or loved one who has died, especially as it often comes at an incredibly difficult time, when you are mourning the loss of someone close to you.

We have pulled together a wide range of information and resources for anyone who has discovered they are a beneficiary of an estate, to help you understand what it means to be a beneficiary, how the probate process works and what rights you have.

At a time when you are most vulnerable, our expert probate and contentious probate lawyers can help explain the often complex legal rules (and jargon) which govern estate administration, and the implications of being a beneficiary.

What is a beneficiary?

A beneficiary is someone who will receive money or any other asset after someone’s death, either under the deceased’s will or under the intestacy rules (the legal rules which govern who inherits the assets of someone who dies without a will).

A beneficiary may be left all of a person’s estate (everything they own, after payment of debts), a portion of it, a fixed sum or even a chattel (a personal possession). Finding out you are the beneficiary of an estate can raise many questions, most of which you will find answered in our article on inheriting from an estate.

What is the difference between a pecuniary legacy, a specific legacy and the residuary estate?

A pecuniary legacy is a gift of money. For example, a will may contain a gift of £200 to a specific person or organisation, known as a legatee.

A specific legacy is a gift of a specific item, owned by the deceased at their death. For example, the will may include a gift of the deceased’s wedding ring to a specific person, also known as a legatee.

The residuary estate consists of those assets remaining after payment of debts, funeral expenses, inheritance tax, administration expenses and any pecuniary legacies and specific legacies. A beneficiary who is entitled to any part of residue is called a residuary beneficiary.

What is a personal representative?

A Personal Representative (PR) is responsible for administering the estate. The PR is called an executor where they are appointed by the will, or an administrator where there is no will or where the will does not appoint executors.

The initial duty of a PR is to ascertain the assets and liabilities of the deceased, to pay any inheritance tax and to apply for a grant of representation which is an authority issued by the court, allowing the PRs to deal with the deceased’s assets. The PRs should also ascertain and take in to account the needs of the beneficiaries of the estate.

Acting as a PR carries many responsibilities and agreeing to act should not be done lightly. Not everyone is able or willing to take on the role, and there are alternatives to consider.

How are beneficiaries of a will contacted?

At the outset of the administration you should be contacted to be advised that you are a beneficiary.

Once the grant of representation has been issued you should be contacted to confirm next steps and given an indication of possible timescales to receive any payments.

You should be kept updated if timescales need revising. There may be discussion about interim distributions and possible indemnities for residuary beneficiaries.

PRs have an obligation to provide estate accounts to the residuary beneficiary to allow for any queries before final distributions are made.

How long will it take to get an inheritance?

The length of time it can take before a beneficiary receives their inheritance can vary greatly. As a first step, the PRs must ascertain the assets and liabilities of the estate and the speed of this depends not only on how complex the estate is, but also how accessible the deceased’s records are. The PRs of the deceased, except in estates of very low value, must then obtain a grant of representation before they can start to collect in the assets and pay the debts. The Probate Registry’s timescale is up to 16 weeks from receipt of the application but we find there is some variance to this depending upon how the application is made and on what basis.

Where the deceased has left businesses, multiple properties, foreign assets or complicated trust arrangements, it is likely to take the PR’s longer to administer the estate, whereas an estate with a few bank accounts and no property can be dealt with more quickly.

Once the grant of representation is obtained and the PRs have taken control of the estate’s assets, legatees can often receive their inheritances, subject to the PRs assessing whether there are any risks of making the payment (such as potential claims against the estate). If the PRs decide to delay payment they should explain the reason for the delay. The PRs may also be able to make interim distributions to the residuary beneficiaries. However, this carries risk for the PRs, details of which are found in our article on personal representatives and the early distribution of estate assets. As a rule, in simple estates the approximate timeframe to administer an estate can be up to 18 months, although some estates can take much longer to finalise.

What do I need to think about if I have received an inheritance?

Benefiting from an estate is a good time to review your personal position. Liaising with our tax planning colleagues, a review can be carried out to ensure you have your own will and Powers of Attorney in place and that they are still fit for purpose. This may also involve considering making gifts during your lifetime or thinking about the creation of trusts, possibly by your will, to protect assets for future generations.

If a deceased’s will has left assets in trust then we have a dedicated team who are able to assist with the ongoing management of the trust. The trust team can help the trustees with taxation of the trust and compliance issues and also provide guidance on when and how funds may be distributed.

What can I do if I disagree with a Personal Representative or believe they are not administering the estate correctly?

Personal Representatives (PRs) have duties, which they must comply with when administering an estate. If you feel a PR is not acting properly or in a timely manner, as a beneficiary you can take action. You should first communicate your concerns to the PR. If this does not resolve matters there are further steps which can be taken depending on whether the PR has started to administer the estate or whether they have already applied for a grant of probate. If you would like further information please contact our wills, trust & estate disputes team.

What can I do if I have not been left as much money as I thought in a will?

If you have been left disappointed by a will you may be able to make a claim on the estate if you have not been adequately provided for. You must be within one of the specified categories of claimants which includes spouses/civil partners, former spouses/civil partners, cohabitees, children, or someone who was being financially maintained immediately before the death.

I am a residuary beneficiary – how much does the estate administration cost?

The PRs will enter into a Client Care Agreement (CCL) with their solicitor and detailed within the CCL will be an estimate of costs and what those costs will cover. There may be subsequent reviews to those costs: for example, matters may take more time, more assets may come to light or estate matters become more complex. All invoices will be approved by the PRs. The costs will be detailed in the estate accounts, which are a forensic account of all monies in and out, and which are sent to the residuary beneficiary to review before the estate is finalised.

Resources

There are many resources on hand to support you through bereavement. Some of the resources you may find particularly helpful are as follows:

Bereavement Guide

Child Bereavement UK: provides support to parents and children following a bereavement. 0800 028 8840

Cruse Bereavement Support: Cruse provides bereavement support. 0808 808 1677

Your GP: Your GP can help with referrals to local bereavement counselling services and tell you about other support services available in your area.

Marie Curie Telephone Bereavement Support: provides a support line for people bereaved, due to a terminal illness. 0800 090 2309

Samaritans: provide emotional support to anyone in emotional distress or struggling to cope at any time of the day or night. Phone: 116 123

Let our highly experienced Probate and Will, Trust & Estate Disputes teams help minimise the stress for you at a difficult time. We offer a wide range of options, depending on how much support you need.

As one of the largest teams of probate and contentious probate lawyers in Kent and the South East, we have a vast depth and breadth of experience and combine sensitivity with a practical approach to dealing with even the most complicated of issues. Our award winning team specialises in administering complex, high and ultra-high net worth estates, as well as estates with agricultural and business assets.

If problems arise, our highly regarded Will, Trust & Estate Disputes lawyers help resolve issues as quickly and cost effectively as possible. We can also draw on expertise from our Wills, Estate & Tax Planning, Tax Management and Residential Property & Conveyancing teams as needed.

Our probate experts also have a great deal of experience in working on international estates and the complexities involved here and have a trusted network of overseas lawyers we work with regularly.

We also have specific expertise in dealing with unusual assets and holding structures. In addition, our team can assist with heritage assets and reliefs, conditional exemption and offers in lieu of tax.

We understand what it means to lose someone and that each estate is unique. This is why we offer a bespoke service, delivering support tailored to your individual needs at this difficult time.

• Full estate administration: We will deal with each aspect of the probate process, so you are not burdened with the responsibility
• Executor support service: You choose which parts of the process you want to carry out yourself and which parts you would like to hand over to our probate experts
• Grant-only service: We apply for the Grant of Representation on your behalf, enabling you to do the rest of the work yourself
• Independent Administration: A service for estates where those involved in administering an estate feel that they can go no further with the process and require an Independent Administrator to be appointed to resolve the issue.

Our probate questionnaire can help identify the type of help you may need.