Discussion
oldnewbie said:
If a beneficiary of a will dies before they actually inherit, in fact prior to probate, does their estate get the inheritance, Or is it lost?
What does the will say?Usually if the beneficiary pre-deceases then their inheritance passes to someone else. But for example in houses it can be left to their successors...
I should note I've not done wills/probate for a loooong time...
1. The will may say what happens, either directly or by implication (i.e., if person x dies within a certain time of me/before my estate is distributed, he shall be treated as having predeceased me).
2. If it doesn't, the general rule is that the beneficiary's estate benefits from the grant (thereby passing to children, etc. as if they had earned the money during their lifetime).
2. If it doesn't, the general rule is that the beneficiary's estate benefits from the grant (thereby passing to children, etc. as if they had earned the money during their lifetime).
Forgive me, but a lot of tosh being said here by some. 
IF there is a valid will, then the estate will be distributed in accordance with that will, apart from any assets that pass outside the will, such as any with joint ownership.
Joint ownership of property or land, when one party dies will automatically pass to the survivor(s) outside the will, however the value will still have to be accounted for on any IHT forms.
There is another form of ownership of property & land where two or more people actually and independently 'share a slice' of the asset, and that is usually know as 'tenancy in common' i.e. each will own a declared percentage (often used in the past for IHT reasons which do not apply now, or for Care Home planning... no I did not say that!) which in that case their share form part of their estate on death and is usually bequeathed in the will if there is one. There are many ways to do this.
Other assets such as bank accounts, shares etc follow the same principle in relation to pure joint ownership (common with partners and spouses)and again, on death the proceeds will go directly to the survivor, but again usually 50% of the value still needs to be accounted for in any IHT returns. In the above cases the 'joint ownership aspect' deals with how the proceeds are settled, not anything to do with IHT returns & liability (although spouse/civil partner exemptions may apply).....complicated isn't it!
NOW, onto the situation where a beneficiary in the will has died just before...
Provided the will has been drafted carefully, then the terms of that specific clause ought to have made provision for that beneficiary dying ie the bequest cannot be completed (sadly I have seen some pretty terrible wills!), i.e. the clause usually will appoint an alternative beneficiary to receive, or others to share.
Sometimes the clause will include a 'per stirpes' clause which generally means that the deceased beneficiaries children or descendants will share. In addition (if the will writer is any good that is!) there is usually a residuary clause, like a 'catch-all' so that any bequests that 'fail' due to prior death of a beneficiary will pass to this (usually) last clause and will dictate how it is shared amongst the stated residuary beneficiaries.
If none of the above applies, i.e. provisions have not been made in case of any part of the will failing due to a beneficiary death, then that particular bequest has failed, and will be dealt with under the rules of intestacy (Administration of Estates Act 1925).
Does this help?
IF there is a valid will, then the estate will be distributed in accordance with that will, apart from any assets that pass outside the will, such as any with joint ownership.
Joint ownership of property or land, when one party dies will automatically pass to the survivor(s) outside the will, however the value will still have to be accounted for on any IHT forms.
There is another form of ownership of property & land where two or more people actually and independently 'share a slice' of the asset, and that is usually know as 'tenancy in common' i.e. each will own a declared percentage (often used in the past for IHT reasons which do not apply now, or for Care Home planning... no I did not say that!) which in that case their share form part of their estate on death and is usually bequeathed in the will if there is one. There are many ways to do this.
Other assets such as bank accounts, shares etc follow the same principle in relation to pure joint ownership (common with partners and spouses)and again, on death the proceeds will go directly to the survivor, but again usually 50% of the value still needs to be accounted for in any IHT returns. In the above cases the 'joint ownership aspect' deals with how the proceeds are settled, not anything to do with IHT returns & liability (although spouse/civil partner exemptions may apply).....complicated isn't it!
NOW, onto the situation where a beneficiary in the will has died just before...
Provided the will has been drafted carefully, then the terms of that specific clause ought to have made provision for that beneficiary dying ie the bequest cannot be completed (sadly I have seen some pretty terrible wills!), i.e. the clause usually will appoint an alternative beneficiary to receive, or others to share.
Sometimes the clause will include a 'per stirpes' clause which generally means that the deceased beneficiaries children or descendants will share. In addition (if the will writer is any good that is!) there is usually a residuary clause, like a 'catch-all' so that any bequests that 'fail' due to prior death of a beneficiary will pass to this (usually) last clause and will dictate how it is shared amongst the stated residuary beneficiaries.
If none of the above applies, i.e. provisions have not been made in case of any part of the will failing due to a beneficiary death, then that particular bequest has failed, and will be dealt with under the rules of intestacy (Administration of Estates Act 1925).
Does this help?
Edited by 3Dee on Tuesday 5th August 11:55
3Dee said:
Forgive me, but a lot of tosh being said here by some.
I'm sorry but if anyone is talking tosh it is you.OK, much of what you are saying is fine but not relevant, the beneficiary was alive when the testator died, they didn't die just before, they died after.
Edited by HenryJM on Tuesday 5th August 12:58
HenryJM said:
I'm sorry but if anyone is talking tosh it is you.
OK, much of what you are saying is fine but not relevant, the beneficiary was alive when the testator died, they didn't die just before, they died after.
You are probably right.. speed-reading (and missing a couple of pertinent posts) can totally change things.. My Bad!OK, much of what you are saying is fine but not relevant, the beneficiary was alive when the testator died, they didn't die just before, they died after.
Edited by HenryJM on Tuesday 5th August 12:58
in which case unless the Will says otherwise, the bequest will form part of the estate of the deceased beneficiary.
Edited by 3Dee on Tuesday 5th August 14:06
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