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If the executors or administrators of an estate cannot find a beneficiary, it can complicate matters. We look at how to handle missing beneficiaries, and the precautions that need to be taken to avoid future legal claims.

Following a death, beneficiaries will either be named in the deceased’s Will or, if there is no valid Will, entitled to inherit under the Rules of Intestacy. The individuals dealing with the estate administration, known as the deceased’s personal representatives, have the responsibility of identifying and locating all beneficiaries.

Who is entitled to inherit after a death?

If the deceased left a Will, the beneficiaries will be specified. They may be named, or the Will may specify a group of beneficiaries to share all or part of the estate, for example, grandchildren. It is important that the personal representatives ensure that all of those entitled to inherit are identified. If a beneficiary is missed, the personal representatives may face a legal claim.

Where there is no valid Will, the Rules of Intestacy apply. These set out who is entitled to inherit in strict order of preference, starting with a spouse or civil partner. For example, if the deceased was married and had children, then their spouse is entitled to the first £322,000 of the net estate, plus all of the deceased’s personal possessions. The remainder of the estate is halved, and the spouse receives one half, with the deceased’s children sharing the other half. In this case, it will be necessary to check that all children have been identified.

What do you do if you need to locate a beneficiary?

The personal representatives need to make a reasonable effort to locate all beneficiaries in order to discharge their duty and reduce their risk of personal liability for failing to find someone entitled to inherit.

This will involve making investigations, such as speaking to friends and relatives of the deceased and their family, checking records such as electoral rolls or Registry Office details, and looking at social media.

Professional organisations known as genealogists exist to assist in searches, although it is important to check that you use a reputable one.

You can also place adverts in the local newspaper where the last known address was or even in the London Gazette.  These should not be confused with statutory adverts which relate to potential debts due to the deceased.  If some details are available for a missing beneficiary, these can also be included, such as their name, last known address, and their relationship to the deceased.

What happens if you cannot find a beneficiary

If you are unable to locate a beneficiary you should seek expert advice and potentially consider taking out a missing beneficiary indemnity policy. This should pay out in the event that a beneficiary comes forward in the future.

It is possible to ask the court for a Benjamin Order. This allows personal representatives to distribute an estate as if a beneficiary has died, and provides legal protection against claims.

Finally, money can be put aside for the beneficiary, or paid into court.

Because of the serious implications of failing to pay a beneficiary, it is strongly recommended that personal representatives take legal advice before distributing an estate.

If you would like further information please contact one of our Wills and Probate experts.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.