When someone passes away, their Will sets out how they want their assets to be distributed. If you have been named in the Will to receive an inheritance, you are known as a beneficiary.
A beneficiary may receive money, property, personal belongings or a share of the remaining estate. However, receiving an inheritance is not always as simple as waiting for assets to be distributed. The executor of the Will must complete several legal steps before beneficiaries can receive their entitlements.
In Victoria, deceased estates are managed under succession laws, including the Administration and Probate Act 1958 (Vic), which outlines important requirements for estate administration, probate and the responsibilities of executors.
Understanding your rights as a beneficiary can help you protect your interests and know what to expect throughout the estate process.
What Does It Mean to Be a Beneficiary of a Will?
A beneficiary is a person, organisation or charity named in a Will to receive a benefit from a deceased person’s estate.
This may include:
- Receiving a specific gift, such as jewellery, a vehicle or personal belongings
- Receiving a cash payment
- Receiving a share of the estate
- Receiving the remaining assets after debts and expenses have been paid
The exact entitlement of a beneficiary depends on the wording of the Will and how the executor administers the estate.
What Rights Do Beneficiaries Have in Victoria?
Beneficiaries have several important rights during the administration of an estate.
The right to receive their inheritance
An executor must administer the estate according to the deceased person’s wishes as expressed in the Will.
They cannot distribute assets however they choose or favour one beneficiary over another unless there is a valid legal reason.
The right to information about the estate
Beneficiaries may be entitled to information about the administration of the estate, including:
- The progress of the estate administration
- Estate assets and liabilities
- The expected distribution process
The level of information available may depend on the beneficiary’s entitlement and the circumstances of the estate.
What Does an Executor Do?
An executor is the person appointed in a Will to manage the deceased person’s estate.
Their responsibilities usually include:
- Locating and securing assets
- Identifying debts and liabilities
- Applying for probate if required
- Managing estate property
- Distributing assets to beneficiaries
Where probate is required, the executor may need to apply through the Supreme Court of Victoria Probate Office before they can deal with certain estate assets.
Can a Beneficiary Challenge a Will in Victoria?
In some circumstances, a Will may be challenged.
A person may consider challenging a Will if they believe:
- They were unfairly excluded from the estate
- The deceased person did not have the required mental capacity when making the Will
- The Will was influenced by another person
- The Will was not properly prepared or executed
For example, eligible family members or dependants may be able to make a family provision claim if they believe they were not adequately provided for.
These claims are governed by Victorian succession laws and involve consideration of factors such as the relationship with the deceased, financial circumstances and the size of the estate.
What Happens If There Is No Will?
If someone dies without a valid Will, they are considered to have died intestate.
In Victoria, the estate is distributed according to intestacy rules rather than the deceased person’s personal wishes.
This can mean assets are distributed differently from what the person may have intended, which is why having an up-to-date Will is an important part of estate planning.
How Long Does It Take for Beneficiaries to Receive an Inheritance?
There is no set timeframe for every estate.
The process can depend on:
- Whether probate is required
- The complexity of the estate
- Whether property needs to be sold
- Whether disputes arise
- Whether tax matters need to be finalised
Executors must take reasonable steps to administer the estate efficiently, but complex estates may take longer to complete.
Can an Executor Refuse to Pay a Beneficiary?
An executor cannot simply refuse to provide a beneficiary with their inheritance.
However, distribution may be delayed where there are legitimate reasons, such as:
- Outstanding debts
- Unresolved claims against the estate
- Property requiring sale
- Legal questions about the distribution
If a beneficiary believes an executor is improperly delaying an estate, obtaining legal advice can help clarify what options are available.
How Irvine Lawyers Can Help With Beneficiary and Estate Matters
Understanding your rights as a beneficiary can be difficult, particularly when emotions are involved and family relationships are complicated.
The Wills and Estates team at Irvine Lawyers can assist with:
- Beneficiary advice
- Probate applications
- Estate administration
- Executor responsibilities
- Will disputes
- Family provision claims
- Estate planning
Whether you are seeking information about an inheritance, dealing with concerns about an executor, or need assistance administering an estate, Irvine Lawyers can provide practical legal guidance.
Contact Irvine Lawyers today for advice about beneficiary rights and deceased estates in Victoria.
Frequently Asked Questions
Can a beneficiary refuse an inheritance in Victoria?
Yes, a beneficiary may choose to disclaim or refuse an inheritance in certain circumstances. This decision can have legal and financial consequences, so it is important to obtain advice before refusing an entitlement under a Will.
Can a beneficiary inherit a debt from an estate?
Generally, beneficiaries do not personally inherit the deceased person’s debts. However, debts and liabilities of the estate usually need to be paid before beneficiaries receive their inheritance.
Can a beneficiary receive their inheritance before probate is granted?
In most cases, an executor must complete certain legal steps before distributing estate assets. If probate is required, the executor will generally need to obtain a Grant of Probate before dealing with certain assets.
What happens if a beneficiary dies before receiving their inheritance?
If a beneficiary dies before receiving their inheritance, what happens depends on the wording of the Will and the circumstances of the estate. The gift may pass to another beneficiary, become part of the beneficiary’s own estate, or be dealt with according to the Will’s terms.
Are grandchildren automatically entitled to an inheritance in Victoria?
No. Grandchildren are not automatically entitled to receive an inheritance if their grandparent dies with a valid Will. They may only inherit if they are named as a beneficiary or if they are eligible to make a claim in certain circumstances.
Can a beneficiary sell their inheritance?
A beneficiary may be able to deal with their inheritance once it has been legally transferred to them. However, they generally cannot sell or transfer estate assets before they become entitled to receive them.
What happens if beneficiaries disagree with each other?
If beneficiaries disagree about an estate, they may attempt to resolve the issue through negotiation or mediation. Where an agreement cannot be reached, legal proceedings may be necessary to resolve the dispute.