Beneficiaries Of A Will: What Do They Get And How Do They Get It?

Any one of us can be beneficiaries in a Will! As long as you have a family member, like a relative or a parent who has a valuable estate, and depending on them, they can include you as a beneficiary in their Will. A Will, also known as a Testament, is a legal document that states a person's wishes about their estate's distribution.

Aside from a beneficiary, the person also nominates an executor in his/her Will. The Executor is responsible for estate distribution and handling the deceased's affairs. Both the executor and a beneficiary play a huge role in how the estate assets will be distributed. Beneficiaries will typically receive the following from the deceased estate:

• Money
• Property and real property (land and anything permanently attached to it)
• Personal belongings of the deceased
• Life insurance payouts

In certain cases, the deceased may also list a charitable organisation as a beneficiary on top of other beneficiaries they wish to include. But the most important thing to know as a beneficiary is what they will get and how they will get it. Do you want to know more?

Rights Enjoyed By Beneficiaries Of A Will

If you have been listed as a beneficiary, you are entitled to several rights, such as the right to:

• Be informed about the deceased person leaving a valid Will.
• Know that you have been named as a beneficiary. You are also entitled to know the nature and extent of the estate, a brief overview of what your particular share can be, and a scheduled date as to when you will receive the portion of the estate you are entitled to.
• Receive updates from the executors throughout the process of distributing the estate. More importantly, beneficiaries need to be updated regarding any expected delays in the distribution of the estate.
• Obtain a copy of the Will. Beneficiaries can request one from the executor
• Receive information about any legal proceedings against the deceased who has made the Will. Beneficiaries also need to be informed about any challenges to the Will.
• Receive your entitlements within 12 months of the death of the deceased, unless in special circumstances which have been explained, or if mentioned otherwise in the Will. Beneficiaries should also receive a Statement of Distribution that details the share of the estate that you are entitled to, and how it was calculated by the executor.

Information That Beneficiaries Must Receive

All the beneficiaries of a Will must receive a copy of the Will. They can also receive all relevant information from the Executor. In this regard, the Executor has the duty to:

• Locate the valid Will
• Organise and pay for the funeral, according to the wishes set out in the Will
• Arrange for the death certificate
• Provide a copy of the Will to any eligible party, especially the Beneficiaries, upon request
• Apply for a Grant of Probate. This is an important process that validates a Will.
• Identify the guardian of the children of the deceased
• Notify about the deceased's death to all relevant parties, like the Australian Tax Office, Centrelink, Banks and superannuation funds.

An important point to remember is that when beneficiaries are being informed about the estate, in case of adult children, each beneficiary has the right to be informed about the entire estate, its real estate, and all liabilities and assets of the estate.

On the other hand, if a grandchild has been named as a beneficiary for a particular asset, he/she have the right to obtain information about only that particular estate, and have no legal right to know about the rest of the estate.

A Long Brewing Dispute Between Beneficiaries and Executors

Yes, you read that right. Executors and beneficiaries of a Will don't particularly have a good relationship with each other. Beneficiaries of a Will sometimes want a fair provision from the Will, and some get greedy and want more than what's given to them.

Now, executors have the burden to protect the Will-maker's last wishes about estate administration. The executor owes a fiduciary duty to the beneficiaries and must act in their best interests. Moreover, they are personally liable for any amounts the court requires the estate to pay. You can only imagine the amount of tension that may brew between executors and beneficiaries.

Either of the two can have shortcomings and commit offences against the estate. So, it's important to for both parties to have clear and open communication throughout the whole estate administration process.

Read: Executor Not Communicating With You? | JB Solicitors

What Is a Family Provision Claim?

A family provision claim is a type of claim that certain people apply for if a person dies without a Will. A person who dies without a Will is a person who dies intestate. These certain people can also use this claim if, in certain circumstances, they believe they received an unfair provision from a Will.

The law will dictate who will receive the deceased's estate if a person dies intestate. To make such a claim, you must be an eligible person, and you were left out of the Will or did not receive proper provision. Eligible people include:

1. The spouse or ex-spouse of the deceased
2. A de facto partner of the deceased
3. The deceased's child
4. A dependent of the deceased
5. A person who had a close personal relationship with the deceased.

Eligible people have 6 months to notify the executor if they want to make this claim. If beneficiaries fail to make a claim within this time frame, the executor can begin distributing the estate. By waiting this period, you are protected against any personal liability related to the claim.

Beneficiaries Of A Will: FAQs

Q: I Believe I Didn't Receive on the Deceased Estate. Can I Contest the Will?

A: If you strongly believe that you are entitled to more than what has been listed under your name, or if you believe that you have not received a fair proportion of the estate, then yes, you can contest a will.

Q: Should Executors Show Accounting Matters to Beneficiaries During Estate Administration?

A: Yes, beneficiaries of a Will have the right to inspect the account that the executor maintains as part of his duties. In NSW, under the NSW Trustee Act, the beneficiary is entitled to receive all information about the deceased person's estate.

Q: Are There Tax Obligations for Beneficiaries?

A: In certain cases, beneficiaries of a Will have certain tax obligations. For instance:

• If you have received monetary assets, you need to pay tax on these assets.
• If you have received property that gives you income in the form of rent or shares, you might need to pay tax on that income.
• If you receive real estate or real estate capital, you will not need to pay any tax unless you are a foreign resident.

Q: How Should Will-Makers List Their Beneficiaries?

A Will dictates who will receive a person's assets after their death. So, naturally, Will-makers should properly and specifically write who will receive their assets. Here are some useful tips for listing down beneficiaries:

• Use the beneficiary's full legal name, address, and date of birth. This can reduce ambiguity and confusion for beneficiaries and the executor.
• As a Will-maker, you should consider legal clarity, your dependents' needs, and potential future scenarios. For example, a Will-maker may want to provide for their children only when they need school fees when they enter college.
• Will-makers should specifically write down what each of their beneficiary will receive. For monetary things, it's important to write the exact amount and how they will receive it.
• It's important to consult with an estate planning lawyer so they can create the perfect estate plan for you. Lawyers can also act as an executor for added legal protection and the absence of biases.

Why Independent Legal Advice Is Important

Dealing with Wills is extremely stressful because, on top of the loss of a loved one, you fear that you might not receive proper provision from their Will. Moreover, there may be greedy beneficiaries who might try to contest it for their own selfish needs. Seeking legal advice from a legal professional can help quell these problems.

In cases where you feel the need to challenge a Will, you will also need legal advice. To contest a Will without a lawyer is like marching to war without a gun. You may feel vulnerable and outnumbered in these moments.

So, it's important to seek legal advice from top Wills and estate planning lawyers like JB Solicitors. We understand that such legal matters are costly and understand the extent of the legal costs of such cases. To prevent you from breaking the bank, you can opt for our mediation services.

Should mediation fail, we will proudly represent you in the local or supreme court and defend your best interests.

Contact JB Solicitors today for all your Wills and estate planning needs.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.