Before discussing beneficiaries of a Will, let’s understand certain terms associated with a Will.
A Will, also known as a Testament, is a legal document that states a person’s wish about how their property is to be distributed after their death.
In addition to this, the person also nominates an Executor in his/her Will. The Executor is responsible for distributing the property as listed in the Will.
Beneficiaries of a Will are the people who are entitled to receive a portion of the property of the deceased person.
Traditionally, the beneficiaries of a Will are the loved ones of the deceased person, including family members, and close friends. Beneficiaries receive assets including monetary assets like money, or heirlooms, or property.
In certain cases, the deceased may also list a charitable organisation as a beneficiary. Individuals can list as many beneficiaries as they wish. Beneficiaries of a Will are usually contacted to inform that they have been listed in a Will.
One of the most important things for beneficiaries of a Will is to understand their rights.
Rights Enjoyed By Beneficiaries Of A Will
If you have been listed as a beneficiary, these are the rights that you are entitled to: –
- The right to be informed about the deceased person leaving a valid Will.
- The right to 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.
- The right to be updated by 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.
- The right to obtain a copy of the Will. Beneficiaries can request to receive a copy of the Will.
- To be informed about any legal proceedings against the deceased who has made the Will. Beneficiaries also need to be informed about any challenges to the Will.
- The right to 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.
- The right to 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
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 certain duties to fulfill: –
- 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
- Identify the guardian of children of the deceased
- Notify about 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 has the right to obtain information about only that particular estate, and has no legal right to know about the rest of the estate.
Tax Implications For Beneficiaries
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.
Beneficiaries Of A Will FAQ
Q: As a beneficiary, 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.
To do so, you need to seek the advice of a lawyer who can guide you with the legal processes of contesting a Will.
Q: Is it a necessity for the executor to show accounting to beneficiaries?
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 estate.
Legal Advice For Beneficiaries
Dealing with Wills is extremely stressful because it means you are dealing with the loss of a loved one. To add to that, the process is complicated and time-consuming and leaves you confused and tired.
Seeking legal advice for these matters will help with all processes associated with a Will. Moreover, in Australia, Wills are quite often contested in courts. Especially in these circumstances, it is important to understand your rights as a beneficiary.
In cases where you feel the need to challenge a Will, you need to obtain legal advice. If there are disputes between two or more beneficiaries, it is highly advised that the beneficiaries try mediation to settle the dispute among themselves. For mediation, JB Solicitors’ expert mediators have the expertise to solve your issues.
In certain cases, beneficiaries are not able to reach a settlement. If this happens, they have to attend court to settle their disputes. In this instance, it is ideal to get legal representation, so you are well aware of the rights that you are entitled to.
Contact JB Solicitors to gain important legal advice as a beneficiary of a Will.