How to distribute an estate with a will

Most wills are straightforward and largely self-explanatory. In most cases, the personal representatives should have no problem analysing the will and working out how to distribute the estate.

However, in many cases things are not so clear. If the will is misinterpreted and the estate distributed incorrectly, the executors could be personally liable.

If in doubt, seek advice from a probate solicitor or other probate professional before distributing the estate.

Here are a few pointers to help you get started.

Identifying beneficiaries

Usually, it is relatively easy to identify the beneficiaries. They may be identified by name or by relationship to the deceased, for example “my children”.

However, it is not always obvious. “My children” is an example. Though perfectly clear in most cases, did you know it includes adopted children, illegitimate children and children unborn but “in the womb”, but not step-children?

Other tips for identifying beneficiaries:

1. If an address is given for a beneficiary, and they have since changed address, this is irrelevant so long as the beneficiary can still be identified.
2. If a will contains a gift to a beneficiary not identified by name, for example “my gardener”, see our guide “Interpreting a will: date of will or date of death?”.
3. Gifts in a will are invalid if they are too broad. For example, a gift to “my friends” is almost certainly invalid because it is impossible to determine who constitutes a “friend”.

These are just a few examples. If uncertain, seek advice from a probate solicitor or other probate professional.

Identifying gifts

This is usually easy, but a gift could fail if the subject matter is unclear. For example, “most of my property”. It is impossible to say for certain how much is meant by “most”, and executors are not allowed to take a view on what "most" may be. The gift is likely to fail.

Distributing the estate

Ensure all debts have been paid. See our guide “Paying the deceased’s debts”.

After debts, personal representatives can pay specific gifts. That includes:

1. Gifts of particular amounts of money (“pecuniary legacies”); and
2. Gifts of particular assets (“specific legacies”).

These may be paid by cheque, bank transfer or cash (if money), or by handing over specific items of property. If a beneficiary has been left an amount of money, they may, if they want to, take one or more of the deceased’s belongings instead of cash, but only with the approval of the executors.

Only after these specific gifts have been paid should the personal representatives distribute the remainder of the estate, known as the residue. See our guide “What is a residuary beneficiary?”.

Gifts upon reaching a certain age

If a gift is left to a beneficiary upon reaching a certain age (for example, 18, 21 or 25), it should be held in trust by the executors until they have reached that age, or paid to that person’s parents if authorised by the will. If this is the case, you may wish to seek advice from a probate solicitor or other probate professional.

Receipts

Always obtain a receipt from a beneficiary who receives a gift.

Other points to bear in mind

1. Gifts in a will can “fail”, either in whole or in part, for example because the gift is badly-worded, a beneficiary dies before the deceased, or because the gift is “forfeited”.
2. Gifts can be “subject to” or “free of” inheritance tax. This is only relevant if there is inheritance tax to pay on the estate.

This guide is no more than a brief introduction with a few pointers. If in doubt, seek advice from a probate solicitor or other probate professional.