How to Locate a Beneficiary of a Will
Introduction
When someone dies, their Will determines who receives the money, property and other assets from their estate. The executor is the person who is responsible for distributing the estate while the persons nominated to receive the proceeds are known as the beneficiaries.
If you die intestate, there are very strict rules of succession that set out who can and can’t be a beneficiary, but that’s not the case with a Will. Anyone can be named as a beneficiary in a Will, and frequently there may be multiple people named to receive different sums or items.
The difficulty is that not everyone updates their Will to reflect changing circumstances. But even if people move away or lose contact with the deceased, if they are named as a beneficiary they are still entitled to receive the legacy.
But what can you do if you aren’t in contact with the individuals anymore? Here’s a closer look at how to locate a beneficiary of a Will.
The Obligations of the Executors
The executors of the Will are responsible for making every possible effort to trace all beneficiaries named in the Will. If their whereabouts is not already known, this may mean the estate may take longer to wrap up than originally expected.
It’s important that the executors make genuine efforts to find beneficiaries; it’s not sufficient to simply pay lip service to the idea. This is because as executor you may be required to prove to the courts how diligent you were in trying to find the missing beneficiary.
There are a number of steps you can take to properly carry out your responsibilities. In many cases it’s entirely possible to trace individuals with very little information.
How to Trace a Beneficiary
Contrary to what the crime shows might suggest, there’s no magical database that contains all of the personal details relating to an individual. If you want to find someone, it will take a bit of work. This is even more the case in the modern world where it’s common for people to move overseas.
This means that when you start searching for an individual, you will probably begin with local searches but if unsuccessful, you may need to consider making international checks. Where you start depends on the information you have regarding the individual’s last known whereabouts.
In some cases you may not even know who a beneficiary is. This can make any searches even more challenging. One option is to arrange for a professional family tree search to be carried out; this will provide you with the missing details on family members, allowing you to identify the named beneficiary. As part of the family tree search you’ll also receive the addresses, making it easy to get in touch once you’ve determined who the beneficiary is.
Some beneficiaries will be easier to find than others, but the following steps can help you to trace them:
Talk to family and friends
It may sound like an obvious step but it’s easy to overlook someone who might have vital information. If the beneficiary is someone from the past, older family members or long-standing friends might remember details that others aren’t aware of. Any information is useful, even if it’s years out of date. This can act as a base to track someone using public records and verify that it’s the correct person.
Section 27 Notice
This may sound like a formal, legal document but Section 27 (Trustees Act 1925) Notices are just an advert in a local paper. These should be placed in the newspapers which are local to the last known address of the beneficiary.
Even if the beneficiary no longer lives in the area, the notice may be seen by someone who knows them so it’s a worthwhile exercise even if you suspect they’ve moved on. The Section 27 Notice provides beneficiaries two months to get in touch and make their claim on the estate. It’s important that this step isn’t skipped because otherwise the estate may be subject to claims at a later date.
Professional searches
If you aren’t able to trace the person by any other method, a professional beneficiary tracing service can often provide a quick resolution. There are many databases which are available to professionals, including the electoral roll, credit reference databases, birth/marriage/death records and consumer databases, to name just a few. In many cases, it’s possible to trace the beneficiary within 10 days. This enables the process of dealing with the estate to be concluded more quickly.
What Happens if the Beneficiary Can’t Be Found?
In many cases, professional tracing services will be able to find missing beneficiaries, providing you with full contact details to enable you to take the next step. However, very occasionally it may prove impossible to trace someone - so what happens then?
If an executor does not exhaust all available resources, they might find a claim being lodged against them personally if the beneficiary appears at a later date. Executors are responsible for carrying out diligent searches and if they fail to do so, they will be liable to pay the beneficiary their share from their own funds.
There are some steps you can take to help reduce your exposure to risk, such as:
Obtaining indemnities
If the whole of the estate is paid to other beneficiaries, it’s possible to obtain indemnities from them in the event that the missing claimant turns up. However, although this provides some protection it’s not entirely bulletproof, especially if they spend their inheritance and have no funds left.
Insurance policy
It’s possible to take out a specialist type of insurance policy which protects against the missing beneficiary making a claim against the estate at a later date. The premium is usually a one-off sum and will pay out the beneficiary’s share if and when get in contact. Insurers may be reluctant to issue a policy unless they are satisfied that proper steps have been taken to exhaust all other avenues. A professional search can be useful in documenting the extensive steps which have been carried out.
Setting aside a reserve fund
Smaller estates may prefer to simply set the money aside in case the beneficiary lodges a claim within the permissible 12 year period. This may seem easier at the time but means that not all of the estate can be distributed and you will need to administer the separate account until the 12 years have expired. After this time, you will need to distribute the money to the estate which could be more complex if other beneficiaries have since died.
Apply for a Benjamin Order
This is a formal option where the executors can apply to the court for a Benjamin Order. This provides legal agreement that the beneficiary’s share can be distributed to others. Crucially, it provides protection for the executors from any later claims. This is a more expensive option and the executors must prove to the court that they have made every effort to trace the beneficiary.
Need Help Tracing a Beneficiary?
If you need to trace a beneficiary of a Will, or need information about the family tree, get in touch with us today to find out how we can help.
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