10 Rights Important to a Beneficiary of a Will

A person is considered a beneficiary when named in a Will as being entitled to receive a portion of a deceased person’s estate. The person with legal responsibility for looking after the distribution of the estate with due care and diligence is the Executor.

If you have been named as a beneficiary of a Will, you have a number of legal rights attached to this status which are protected in law.

Beneficiaries in deceased estates often need to seek advice about their rights. These enquiries can arise from a concern about the manner in which an estate is being administered, including failure to be provided with a copy of the Will, or a lack of information about what is happening with the estate.

Knowing your rights is important. Inappropriate behaviour, or even fraud by an Executor, is not unheard of. Along with appropriate legal advice, knowing your rights as a beneficiary can help make a decision, for example, as to whether challenging a Will is the right action for you.

Here, we look at other important beneficiary rights.

1. A beneficiary is entitled to be informed of the existence of a Will

A beneficiary has a right to be informed that the deceased has left a valid Will in which they have been named.

A beneficiary will often have been previously advised of the Will’s existence by the maker or by the Executor nominated in the Will.

2. A beneficiary has a right to inspect or be given a copy of the Will

If a person is named as a beneficiary in a Will, they are entitled to inspect the Will or be given a copy of it. This right includes any revoked Will.

The Executor, or their acting solicitor, must provide a copy of the Will or allow a beneficiary the necessary access to inspect the Will.

3. A beneficiary has the right to be notified of any liabilities

Before any distribution of an estate, the beneficiary has the right to be advised of any liabilities of the estate, such as any debts and taxes, particularly regarding those taxes attached to their entitlement.

4. A beneficiary has a right to be advised if there are legal proceedings against the estate

Inheritance disputes arise for various reasons. When, for example, an excluded but eligible person believes that they are entitled to a share of the Will, they may wish to make a challenge to the Will. A successful challenge would change how the estate will be distributed, meaning all beneficiaries must be notified of what is happening.

5. A beneficiary has a right to expect the proper administration of the estate

The Executor owes a fiduciary duty to the beneficiaries. They must act impartially and act in the best interests of all the beneficiaries.

Strictly speaking, a beneficiary does not have a right to assets in the estate, notwithstanding certain assets may have been earmarked for them. Rather the right is an entitlement to the proper and timely administration of the estate by the Executor.

Failure to act in the best interests of the beneficiaries can mean proceedings can be taken in the NSW Supreme Court against the Executor personally to rectify the situation.

6. A beneficiary still has the right to challenge the Will

Being a beneficiary does not mean losing the ability to bring a challenge to the Will themselves. If a beneficiary is unhappy about the way the estate is to be distributed, or there are concerns about the validity of the Will, they are entitled to contest the Will or challenge its terms. A beneficiary is not prevented from challenging the Will, for example, if they believe that they are due a greater entitlement.

A Court may decide that the distribution of assets should be different from that which is specified in the Will. This usually happens if the Court finds the deceased failed to provide adequately for the maintenance and advancement of someone the deceased had a responsibility to.

7. A beneficiary has the right to receive their entitlement from the estate within 12 months

A beneficiary has the right to be informed of the expected date of distribution of the estate. In NSW, it is the right of all beneficiaries of a deceased’s estate to receive their entitlement within 12 months of the date of death unless otherwise stipulated in the Will.

Accordingly, a beneficiary also has the right to be informed of any expected delay in the distribution of the estate. The Executor must inform all beneficiaries of any delay, the reasons for the delay and when they might expect to receive their entitlement.

8. A beneficiary has the right to be made aware of any legal proceedings against the estate or the deceased

If there are any legal proceedings or claims against the estate that may affect the beneficiaries' entitlements, the Executor must advise the beneficiaries. Similarly, if there are any proceedings or claims against the deceased which are ongoing after the date of death, the Executor must advise the beneficiaries.

9. A beneficiary has the right to receive a Statement of Distribution

Each beneficiary is entitled to receive a Statement of Distribution from the Executor which outlines how the distribution of the estate was calculated. This Statement may inform the completion of the beneficiary’s tax return for the relevant financial year.

10. A beneficiary has the right to also be the Executor of the Will

Being a beneficiary and the Executor are not mutually exclusive. Indeed, it is not uncommon for a beneficiary to also be the Executor. For example, a person might name their spouse as Executor and sole beneficiary of their estate.

Contact our Wills and Probate Lawyers in Sydney, NSW

The administration of an estate can be a complicated and lengthy process. Szabo & Associates Solicitors are experienced practitioners in helping beneficiaries, handling family law claims and dealing with all types of inheritance issues. Please contact us on 02 9281 5088 or fill in the online contact form.