Beneficiaries died since will was made

Jewels-L

I am the executor of my aunt’s will and I have just been granted probate. My aunt left her savings to be equally shared between six beneficiaries (myself included). Two of those beneficiaries have died since she made the will. I would assume the money just gets divided between the four surviving beneficiaries? Is that correct? I guess this must happen all the time but I just want make sure before I share the money out.

In case it is relevant we are in England and one of the beneficiaries who predeceased her is a brother with no spouse and an adult son (who is also a beneficiary). The other is a niece with a surviving spouse and an adult daughter (however the daughter disappeared when she was 15 and turned up when she was 39; after her mother had died!). There is nothing in the will to indicate the money should go to surviving relatives and I know that wasn’t my aunt’s intention.

Many thanks

UsernameAlreadyExists

Jewels-L wrote: »

I would assume the money just gets divided between the four surviving beneficiaries? Is that correct?

No. The share is to go into the estate of the benificiary and be executed from there.

Jewels-L wrote: »

In case it is relevant we are in England and one of the beneficiaries who predeceased her is a brother with no spouse and an adult son (who is also a beneficiary).

The adult son will get his father's share - assuming the brother's will didn't state otherwise.

Jewels-L wrote: »

The other is a niece with a surviving spouse and an adult daughter (however the daughter disappeared when she was 15 and turned up when she was 39; after her mother had died!).

I expect the surviving spouse will get niece's share, again assuming the niece's will didn't state otherwise.

Jewels-L wrote: »

There is nothing in the will to indicate the money should go to surviving relatives and I know that wasn’t my aunt’s intention.

Unfortunately that's not under her control - you must execute what's been stated ...

getmore4less

The above is almost certainly partialy wrong maybe all of it.

Be carefull it depend who the benificiaries are and the wording of the will on how they get distributed.

The wording may not be obvious that it goes to the dead benificiaries issue.

Check carefully for any benificiary not a child oft he deceased

http://www.hmrc.gov.uk/manuals/ihtmanual/IHTM12084.htm

http://www.stepjournal.org/journal_archive/2011/step_journal_feb_2011/the_doctrine_of_lapse.aspx

UsernameAlreadyExists

Both of your links refer to "gifts" lapsing, that's not the situation described above.

eddtheduck

Yes it is – a ‘gift’ is anything given by the testator in the will, including the residue (the remainder of the estate after any specific gifts) – it doesn’t have to be something specific like a gold watch or a fixed sum of money.

When a beneficiary dies before the testator (your aunt), the gift is not distributed in accordance with the beneficiary's will - it falls back into the 'residue' of the testator’s estate (the ‘residue’ is the remainder of the estate after any specific gifts).

There is an exception to this – if the beneficiary was a direct descendant (child, grandchild etc.) of the testator and the beneficiary himself left descendants, the gift passes to those descendants. So the gift to the brother does not pass directly to his adult son, because his son is not a direct descendant of your aunt.

AFAIK it depends on the wording of the will whether the shares of the 2 beneficiaries who have died pass to the other 4 beneficiaries or if they have to be distributed according to the intestacy rules (in which case the son of the brother and the daughter of the niece may well qualify).
I think you may need to consult a solicitor to be sure – preferably one who specialises in wills & probate.

UsernameAlreadyExists

Well I have first hand experience as I have received part of an inheritance that has "dropped through" my deceased father's share.
He, His sister (aunt), and His brother (uncle) were 3 of 9 benificiaries when it started. It took a long time to resolve and his brother died in the mean time intestate. So his brothers share (no kids/spouse) went to the sister and again my father. So I received half again as did my aunt.
Are you saying that this was handled incorrectly?

NAR

UsernameAlreadyExists wrote: »

Are you saying that this was handled incorrectly?

It all depends on the wording of the will.

eddtheduck

No, because from what you say your father's brother died after the testator of the will where he was named as one of the 9 beneficiaries (but before distribution of that estate) - whereas in the OP's case the two beneficiaries died before her aunt (at least I'm assuming that from what they have written - apologies if I have got that wrong). It's the order of the deaths that makes a difference.

Shelldean

I thought it dropped down the line if the person dies beforehand.

So the brothers share goes to his adult son who in this case then ends up with two shares - his own plus his fathers.

And the Niece who died first it goes to her daughter absent or not!. I do know it cant go to nieces spouse, it HAS to be blood line, marriage doesnt count.

Not totally sure though

rochja

You are not the first person to have this problem and a quick internet search provides answers along the lines of this:
http://www.ehow.co.uk/info_8527158_happens-beneficiary-dies-before-distribution.html

antrobus

Doctrine of lapse - "the general rule is that if a beneficiary dies before a testator, any gift under the will lapses"

See http://www.stepjournal.org/journal_archive/2011/step_journal_feb_2011/the_doctrine_of_lapse.aspx

Note the exceptions cited.