Beneficiary refusing to accept bequest

[Ladypieshop]

Does anyone know what happens when a beneficiary refuses to accept a bequest?

Can the money be put into an account to wait until they deign to accept it?

[Ladypieshop]

This is in England and Wales.

[Blowingthroughthejasmineinmymi]

NO idea, interesting problem! You don't normally hear of people refusing money! I guess I would keep it separate somewhere?

[Beachhairdontcare]

That IS interesting. I mean, if you didn't want or need it, surely you'd donate it to a worthy cause instead?

[OVienna]

Is it money or something else, like an asset where there is a tax implication and requires the receiver to cough up?

[Graphista]

I was looking into this recently as I MAY refuse an upcoming bequest myself I haven't decided yet.

www.simplifythelaw.co.uk/private-client/post-death-arrangements-and-probate/beneficiary-reject-gift-will

Seems to explain simply.

I think they have to inform an executor in writing and if they refuse a bequest they can't decide what happens to the money (that's the quandary I have. I'd like it to go to certain charities instead).

It's not as unusual as you might think.

[Scribblegirl]

I have a vague recollection that they can formally reject it and it will return to the main estate, but it's donkey's years since I did my law degree (not a lawyer!)

[Ladypieshop]

I don't know what his motives are, but he has been "difficult" and wanted to be given chattels (worth hundreds) that weren't left to him in the will, whereas he won't give any instructuons about his share of the money (tens of thousands) that the rest of his family banked months ago.

Thanks for the info Graphista.

Time us running out for any deeds of variation, and the burden of inheritance tax has fallen on others, so I think the best thing is to set aside the money until such time as he formally renounces it.

[Graphista]

I think there are 'reasonable' time limits too, he can't leave you in limbo for years especially when it's costing others in taxation which some of should be coming out of his share.

[Blowingthroughthejasmineinmymi]

Yes tell him he has until x date to claim it.....otherwise all the rest get it shared out.

HOwever - I can understand if he wanted items which mean more to him than the money. But its not something he can dwell on indefinatly is it. He is lucky some people get diddly squat.

[Ladypieshop]

Good points everyone! Thanks for the advice.

[MountainDweller]

My Mum was thinking about doing this, a small legacy from a cousin with whom she'd lost touch. In her case it would have meant she lost her pension credits, which also entitled her to help with other things such as council tax. Obviously when she'd spent money she'd get her credits back. Could he have a reason like that? I guess if he was given stuff rather than money it wouldn't apply. I think my mum was told that the money would pass to the next heir on the list on her side, which would be her children, but that she'd be considered to have ' voluntarily deprived herself of capital' and would therefore still lose the benefits. I just wonder if this guy could be in the same situation as my Mum? It's crap when an inheritance won't make you any better off 🙁

[Collaborate]

Don't give him a time limit after which you'll distribute it elsewhere, simply because some random people on the internet thought it a good idea. It's worth getting some advice from a solicitor about this.

[kath6144]

Op - why do you say the burden of inheritance tax has fallen on others?

Inheritance tax is taken out of an estate before any bequests are made, or should be, so why have others taken the IHT burden? Are you saying IHT has come directly out of other beneficiaries share of the estate, but not his?

Surely the beneficiary can just be sent a cheque for his part of the estate (my DS was when inherited from a relative, he had to confirm receipt of cheque to solicitor). If he doesnt cash it then that is his problem surely? But the executor/solicitor have done their duty and passed him his money.

[dailystuck71]

IHT falls on no one. It's paid straight from the estate. The beneficiaries only get what's left over.

[caroldecker]

Daily not quite true - fixed beneficiaries get what is left to them (so £10k to cousin X), IHT comes out of the residual estate - assuming there is enough left. So the residual legatee can pay tax on gifts to others.
Gifts made up to 7 years prior to death can become taxable and the giftee can be chased for the tax due.

[Ladypieshop]

The reluctant one is wealthy, and is unlikely to receive any benefits. I think he has a low opinion of the executors and of how long it has taken to sort stuff out, and is making a "point".

Most of the estate comprised of property that sold above the IHT threshold. The tax and fees were paid from whats left for the residual beneficiaries to receive, due to how the will was written.

I'm going to get legal advice.