What Is a Beneficiary in a Will?

The basic definition

A beneficiary is someone who receives a gift from your estate under your will. That gift can be a specific item, a sum of money, a share of everything you own, or a combination of these.

You can name anyone as a beneficiary: family members, friends, an unmarried partner, people who live overseas, and registered charities. There is no legal restriction on who you can leave your estate to in England and Wales.

Specific beneficiaries and residuary beneficiaries

Most wills work with two categories.

A specific beneficiary receives a named item or a fixed sum. For example: "I leave my car to my brother James" or "I leave £5,000 to Cancer Research UK." They get exactly what the will says, nothing more, regardless of how the rest of the estate is divided.

A residuary beneficiary receives a share of the residue: everything that is left after specific gifts have been made, debts have been paid, and funeral costs covered. Most people name their spouse and/or children as residuary beneficiaries, often with percentage shares (for example, 50% to each child).

What happens if a beneficiary dies before you

Usually their gift fails and falls into the rest of your estate, unless they were your child or grandchild with children of their own. The fix is to name a backup for each gift. The full rules, with examples, are in what happens if a beneficiary dies before you.

PureWill lets you name up to six residuary beneficiaries with percentage shares, and name a backup in case your primary beneficiaries cannot inherit.

Leaving gifts to charity

Charitable gifts are straightforward. You name the charity and its registered charity number in your will. Charitable gifts are exempt from inheritance tax, which can reduce the tax bill on your overall estate if it is above the threshold.

What beneficiaries are entitled to know

Once you have died, your beneficiaries have the right to be told they are named in your will and to receive updates on the estate's administration. They are entitled to see the grant of probate and, in most cases, the will itself. They are not entitled to be consulted while you are alive. Your will is a private document until after your death.