What Happens If A Beneficiary Cannot Be Found?

The role of an Executor is one that comes with the legal responsibility to ensure that everyone who is entitled to benefit from an Estate does so. This often comes with challenges; especially if a beneficiary cannot be found.

While this doesn’t happen very often, as the majority of Wills contain close relatives and loved ones as beneficiaries, people do lose touch over the years, or a Testator may still want to leave a gift to someone that they have not been in regular contact with. This can mean that the executor will have to spend time tracking down the missing beneficiaries to ensure the wishes in the Will can be carried out.

They have a responsibility to do everything possible to find the beneficiary. If that is not done, and the beneficiary misses out, then the Executor could find themselves having to pay them personally.

How to find a missing beneficiary.

The first, and most obvious, way of finding someone is asking other family members and friends whether they know of their whereabouts or have any contact details. Occasionally an advert in a newspaper can work and of course, it is possible to search and post to social media platforms as well. If this doesn’t locate the beneficiary, then a tracing agent can be employed. This comes at a financial cost to the Estate though so should only be considered when other avenues have been exhausted.

Protection for the Executor if a beneficiary cannot be found.

The Executor should also be aware that the distribution of the Estate should not be delayed unnecessarily while searching for a missing person. If someone cannot be located having tried all avenues, then it’s important to ensure the right protection is put in place to avoid personal liability should they eventually turn up.

These options are:

• Set up a reserve fund where money is held back to pay them.

• An indemnity from beneficiaries - they all agree to pay the money should they re-appear.

• Take out an insurance policy - some companies cover the entitlement should the beneficiary be located in the future.

• Arrange for a court order - the court will give permission that allows the estate to be distributed based on a presumption that the beneficiary will not be found.

There are advantages and disadvantages to all of these options, and some are more suitable than others. One thing to consider is the value of the inheritance that the beneficiary will receive. This value will help you determine which option you choose as it needs to be relevant to the protection you arrange.