If the executors or administrators of an estate cannot find a beneficiary, it can complicate matters. We look at how to handle missing beneficiaries, and the precautions that need to be taken to avoid future legal claims.
Following a death, beneficiaries will either be named in the deceased’s Will or, if there is no valid Will, entitled to inherit under the Rules of Intestacy. The individuals dealing with the estate administration, known as the deceased’s personal representatives, have the responsibility of identifying and locating all beneficiaries.
Who is entitled to inherit after a death?
If the deceased left a Will, the beneficiaries will be specified. They may be named, or the Will may specify a group of beneficiaries to share all or part of the estate, for example, grandchildren. It is important that the personal representatives ensure that all of those entitled to inherit are identified. If a beneficiary is missed, the personal representatives may face a legal claim.
Where there is no valid Will, the Rules of Intestacy apply. These set out who is entitled to inherit in strict order of preference, starting with a spouse or civil partner. For example, if the deceased was married and had children, then their spouse is entitled to the first £322,000 of the net estate, plus all of the deceased’s personal possessions. The remainder of the estate is halved, and the spouse receives one half, with the deceased’s children sharing the other half. In this case, it will be necessary to check that all children have been identified.
What do you do if you need to locate a beneficiary?
The personal representatives need to make a reasonable effort to locate all beneficiaries in order to discharge their duty and reduce their risk of personal liability for failing to find someone entitled to inherit.
This will involve making investigations, such as speaking to friends and relatives of the deceased and their family, checking records such as electoral rolls or Registry Office details, and looking at social media.
Professional organisations exist to assist in searches, although it is important to check that you use a reputable one.
It is also important to place statutory advertisements in local newspapers for the places where the deceased lived and where it is likely that beneficiaries may be. Finally, advertisements should be put in The Gazette asking beneficiaries to make themselves known.
The advertisement must contain certain details, including:
- The deceased’s full name
- Their date of death
- Their last known address
- The full names and addresses of the deceased’s personal representatives, which is either the estate’s executors or, if the deceased did not leave a valid Will, the estate’s administrators
- The date by which a claim must be received, which must be at least two months after the date on which the advertisement is published
- A notice of intention stating that after this date, the personal representatives intend to distribute the estate, having regard only to claims of which they have received notice
If some details are available for a missing beneficiary, these can also be included, such as their name, last known address, and their relationship to the deceased.
What happens if you cannot find a beneficiary
If you are unable to locate a beneficiary, you can seek indemnity from the known beneficiaries that they will return funds if a missing beneficiary is later located. You should seek expert advice on this option, as it is essential to have a robust and legally binding agreement in place.
To protect yourself in the event of a claim, you can put missing beneficiary indemnity insurance in place. This should pay out in the event that a beneficiary comes forward in the future.
It is possible to ask the court for a Benjamin Order. This allows personal representatives to distribute an estate as if a beneficiary has died, and provides legal protection against claims.
Finally, money can be put aside for the beneficiary, or paid into court.
Because of the serious implications of failing to pay a beneficiary, it is strongly recommended that personal representatives take legal advice before distributing an estate.
Contact Us:
If you would like to speak to one of our expert estate planners, ring us on 01634 353 658 or email us at rob@pembrokewillwriters.com.