What you need to know about beneficiaries
Whether you are in the process of writing your will or someone close to you has passed away, you may have heard the term beneficiaries and wonder whether it is something you need to consider.
Beneficiaries are those people who benefit, whether through a will, a trust or a life insurance policy when someone dies. Each beneficiary is named within the relevant document and there can be as many beneficiaries as the deceased wishes.
In instances where someone dies and a will hasn’t been left, known as ‘intestate’, beneficiaries are set in a way outlined in law.
Who are the beneficiaries?
For many people, the beneficiaries of their will are their children and/or spouse, however other family members, friends and charities can also be named.
If a person has died without a will, beneficiaries will be those entitled to inherit under the ‘order of succession of beneficiaries’. In these circumstances, the deceased’s spouse/ civil partner, children, parents, siblings and other relatives may be eligible to inherit.
When it comes to children, all of the deceased’s children are treated equally, whether the child was adopted, from a previous relationship or from marriage.
Issues with beneficiaries
Where a will has been left it is often straightforward to ensure that the deceased’s wishes are adhered to. However, there are instances where this may be difficult, including whether one of the beneficiaries has been declared bankrupt or the beneficiary is mentally incapable. In these instances, seeking legal advice is advised.
Divorce and marriage
The timing of a will matters when it comes to marriage and divorce. For example, a will made before a marriage, (or registered civil partnership), is revoked unless the will speci