As a Beneficiary, What Are My Rights?

INTRODUCTION

Navigating the emotional period after the loss of a loved one is challenging enough without additional complications. But if you discover you've been named a Beneficiary in a Will, it’s likely you’ll overwhelmed with a flurry of questions.

To alleviate any confusion, we’ve created this article to help you understand your rights as a Beneficiary, which are designed to prevent any potential misconduct by the Executor or Trustee.

The most important rights include:

• The right to inherit.
• The right to information.
• The right to challenge a Will.
• The right to challenge the Executor or bring claims against the Executor.
• The right to interest.
• The right to an Estate account.
• The right to receive or renounce bequests.
• The right to transparency.
• The right to privacy.
• The right to inherit under the rules of intestacy.

Additionally, there are some other considerations to bear in mind:

• Tax Implications: Beneficiaries should be aware of any tax implications related to their inheritance.

• Executor's Duties: Beneficiaries have the right to expect the Executor to perform their duties responsibly and in the best interest of the Estate. This includes appropriately managing Estate assets, paying off debts and taxes, and distributing bequests in accordance with the Will.

• Legal Advice and Representation: Beneficiaries have the right to seek legal advice and representation if they feel their rights have been infringed upon or they need assistance understanding their rights.

In addition to these rights, Beneficiaries should expect a legal duty of care from the Executor, ensuring proper Estate administration and consistent, clear communication.

If Beneficiaries find any of these rights are breached or the Estate has been mismanaged, they can take legal action against an Executor.

This article discusses these rights and considerations, offering guidance on the appropriate action to take.

1. THE RIGHT TO INHERIT

As a named Beneficiary in a Will, you are entitled to your inheritance, either as laid out in accordance with the Testator's wishes or as a share of the residuary Estate after everything else has been paid out.

Executors are duty bound to respect the terms of the Will and they do not have the power to withhold your inheritance, irrespective of any personal sentiments towards any of the named Beneficiaries.

However, remember that your rights as a Beneficiary are contingent upon the existence and validity of the Will exists, as well as your relationship to the deceased.

If no Will exists, the deceased person is considered to have died "intestate," and the Estate is distributed according to the rules of intestacy. If this is the case, please see our additional articles on intestacy that clarify the general order of inheritance.

If you’ve been excluded from the Will, yet believe you have a right to inherit, you may challenge the Will or the rules of intestacy under the Inheritance (Provision for Family and Dependants) Act 1975. For details on how to challenge a Will, please refer to point 3 below.

2. THE RIGHT TO INFORMATION

The right to information differs depending on whether you are a Residuary Beneficiary or Specific/Pecuniary Beneficiary.

As a Residuary Beneficiary:

A residuary Beneficiary is entitled to what's left over from the Estate after all debts, taxes, gifts, and other costs are settled.

Generally, you’re entitled to a greater amount of information and have the right to:

• receive regular updates on the Estate administration progress;
• view full Estate accounts, including details of all assets and liabilities;
• obtain detailed written explanations of any Executor decisions you dispute or don’t fully understand.

As a Specific or Pecuniary Beneficiary:

If you have been left a particular item or a fixed cash amount, your rights to information aren’t as extensive, and you don't automatically have the right to view full Estate accounts.

However, you DO have the right to:

• receive updates about your entitlement;
• receive your gift or cash sum within a reasonable timeframe;
• obtain a reasonable explanation if your gift or cash sum hasn’t been delivered.

Also, keep the following in mind:

1. There's no set schedule for how often the Executor should update Beneficiaries.
2. Everybody should agree upfront about the frequency and method of communication during the Estate administration process.
3. If you’re concerned about prolonged proceedings or you're not receiving the right information, please contact us for further advice. 

3. THE RIGHT TO CONTEST A WILL

As a Beneficiary, you have the right to contest a Will under certain circumstances. These circumstances are outlined in our related articles, which we advise you to consult for a full understanding.

However, here's a succinct overview of those rights:

1. Lack of Testamentary Capacity: If you believe the Testator (the person who made the Will) did not have the mental capacity to understand the implications of their actions at the time they made the Will.
2. Undue Influence: If you suspect the Testator was pressured or coerced into making the Will.
3. Fraud or Forgery: If you suspect the Will to be a forgery, or the Testator was deceived into signing it.
4. Lack of Knowledge and Approval: If you can substantiate that the Testator did not understand or approve the content of the Will.
5. Invalid Execution: If the Will wasn't signed by the Testator in the presence of two witnesses who then signed the Will in the presence of the Testator.
6. Claims under the Inheritance (Provision for Family & Dependents) Act 1975: Specific categories of individuals (including spouses, children, and those financially dependent upon the deceased) can make a claim under this act if they believe the Will doesn't make reasonable financial provision for them.
7. Rectification and Construction Claims: If you believe there was a clerical error or the will writer didn't understand the Testator's instructions, resulting in a Will that doesn't reflect the Testator’s intentions.

4. THE RIGHT TO CHALLENGE THE EXECUTOR OR BRING A CLAIM AGAINST THE EXECUTOR

The Executors of a Will have a fiduciary duty to act in the best interests of all Beneficiaries and to ensure they handle the Estate properly.

If a sale of assets is involved, the Executor is also accountable for obtaining the best price for that asset.

As a Beneficiary, you have the right to expect the Executor to uphold this duty of care.

Here are some of the main reasons for challenging an Executor or bringing a claim against them:

1. Estate Mismanagement: This happens when the Executor doesn’t manage the Estate properly, fails to pay outstanding debts or taxes, or doesn’t distribute assets in accordance with the Testator's wishes.
2. Misconduct: This relates to a situation where the Executor is proven to act dishonestly or has been convicted of a crime, abuses their position, or mismanages the Estate in some way such as being reckless with funds.
3. Delay or Neglect: An Executor is expected to carry out their duties within a reasonable timeframe. If they fail to progress as quickly as the Beneficiary reasonably expects, it can be considered as grounds for delay or neglect.
4. Failure to Act: Both inaction and sufficient action can be reasons to argue that the Executor is not fulfilling their fiduciary duty.
5. Conflict of Interest: If an Executor's conflict of interest prevents them from acting in the best interest of all Beneficiaries. 

5. THE RIGHT TO INTEREST

As a Beneficiary, you have certain rights to interest to interest on your inheritance as outlined in the Administration of Estates Act 2000. These rights include:

• Statutory Interest: Under the Act, if the Executor fails to distribute the assets from the Estate to the Beneficiaries within one year from the date of death, the Beneficiaries may be entitled to receive interest on their inheritance from this date, currently set at 6% per annum.

• Interest on a Specific Legacy: If you are a Beneficiary and a defined amount of money is left to you as a Pecuniary Legacy, and the Will details that it should accrue interest, then that interest will start to accrue from the date of death until the point of payment.

• Trustee's Power to Invest: In accordance with the Trustee Act 2000, an Executor who acts as a Trustee has the power to invest any funds that form part of the Estate in a way they see fit, unless otherwise specified in the Will. Furthermore, any income or interested generated from these investments form part of the residuary Estate and is expected to be distributed among the residuary Beneficiaries.

Please note that any interest forms part of the Beneficiary's taxable estate and should be included on their Self-Assessment tax return.

6. THE RIGHT TO AN ESTATE ACCOUNT

Your rights as a Beneficiary will differ based on whether you are a Residuary Beneficiary or a Specific/Pecuniary Beneficiary.

To understand these rights, please refer back to Section 2: THE RIGHT TO INFORMATION above, where your rights under these differences are outlined in detail.

7. YOUR RIGHT TO RECEIVE OR ANNOUNCE A BEQUEST

1. The Right to Receive

As a Beneficiary, you have the right to receive any bequest outlined left in a Will, as long as there are sufficient assets left over in the Estate after all debts and taxes have been settled in full.

2. The Right to Renounce

You have the option to “renounce an interest” if you choose to refuse a bequest. It's generally not possible to partially refuse a bequest or attach certain conditions. In addition, you cannot dictate who should receive the bequest in your place.

If you renounce your bequest, that part of the Estate will be redistributed as if you had “predeceased” the Testator.

If you are thinking of renouncing a bequest, you should consult your financial advisor due to the financial and tax implications.

OTHER RELATED QUESTIONS:

How soon can I see the Will?

Technically, you're only entitled to view the Will once the Grant of Probate has been issued, at which point it becomes a public document.

Although Executors usually share the details of the Will before this stage, you should bear in mind that they are under no obligation to disclose the Will before the Grant of Probate is issued.

Therefore, the sharing of the Will is at their discretion.

How long will it take before I receive my share of the Estate?

The timeline can vary greatly as each Estate has its own unique circumstances.

Usually, you can expect this to be a time-consuming process, and Beneficiaries should expect a period of between one and two years before final settlement.

In the first instance, the Executor is not required to distribute the Estate until one year from the date of death has elapsed. Even after this period, the Executor may still have valid reasons for not distributing the Estate.

This may be frustrating but remember that the Executor must first pay off any outstanding liabilities and taxes, maintain records, and then prepare all the remaining assets for distribution. If the sale of property is involved, the proceeds need to be distributed accordingly.

In addition, if the Estate is particularly complex or if the deceased had assets overseas, then complications can arise.

If you're not sure about this process or believe it’s being delayed, we can certainly advise you about the process.

Can an Executor modify a Will?

Yes, but only under specific conditions:

1. The Beneficiary must be of legal adult age.
2. The Beneficiary must be of sound mental capacity to understand and consent to any modifications.
3. The Beneficiary, whose portion of the Will is under consideration for modification, must agree to the changes. 

Need to know more or you’d like to discuss your options?

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