Advice Admin & Legal What is a beneficiary in a will?

What is a beneficiary in a will?

Eliza Elliott, Legacy Adviser at Octopus Legacy. Last updated: 2026-03-27

Beneficiary in a Will, Who Can Inherit and How to Protect Them

A beneficiary is someone you've left something to in your will, whether that's money, belongings, property, or a share of everything you own.

Choosing your beneficiaries is one of the most important decisions you'll make when writing a will. It's how you make sure the people (and causes) you care about are looked after when you die. Without a will, you don't get a say. The courts distribute your estate according to the rules of intestacy, and those rules don't always match what you'd want.

This guide covers who can be a beneficiary, how to protect them, and some of the more detailed planning options like trusts, contingent beneficiaries, and leaving gifts to children.

Who can be a beneficiary?

In England and Wales, you have broad freedom to leave your estate to almost anyone. Your beneficiaries can include:

Named individuals — family, friends, partners, or anyone you choose
Classes of people — for example, "my grandchildren" (which automatically includes future grandchildren)
Charities and organisations — UK-registered charities, community groups, or causes you support
Unborn or future children — by using trust clauses that include children born after the will is made
Pets — not directly (animals can't own property), but you can set up a trust for their care

There's no legal requirement to leave anything to your family. England and Wales law gives you testamentary freedom, the right to decide who inherits. That said, certain people can challenge your will if they feel they haven't been provided for (more on that below).

Types of beneficiary

There are two main types of beneficiary, and understanding the difference matters.

Specific legatees

A specific legatee receives a defined gift. This could be a fixed sum of money (say £5,000), a particular item (your grandmother's ring), or a specific property. These gifts are paid out first from the estate.

Residuary beneficiaries

A residuary beneficiary inherits whatever's left after all debts, taxes, funeral costs, and specific gifts have been paid. This is often the largest share of an estate, but it can also be less than expected if the estate has significant debts or many specific legacies.

Why this matters: If you leave most of your estate as specific gifts, your residuary beneficiary could end up with very little, or nothing. It's worth reviewing the balance regularly, especially as the value of your estate changes over time.

Contingent beneficiaries, your backup plan

A contingent beneficiary inherits only if your primary beneficiary can't, usually because they've died before you.

This is more common than people think. If your primary beneficiary dies and you haven't named a contingent, their share either falls into your residuary estate or, if there's no residuary clause, passes under intestacy rules. Neither outcome might be what you wanted.

Survivorship clauses

Most well-drafted wills include a survivorship clause. This says a beneficiary must survive you by a set period (usually 28 days) to inherit. It prevents complications when two people die around the same time, for example, in an accident.

Without a survivorship clause, the commorientes rule (Section 184, Law of Property Act 1925) applies. This presumes the older person died first, which can send assets in unintended directions.

What to do: Name at least one contingent beneficiary for every major gift in your will. And make sure your will includes a survivorship clause.

Leaving gifts to children (minors)

You can name anyone under 18 as a beneficiary, but children can't legally receive or manage their inheritance directly. Instead, the assets are held in trust until they reach adulthood.

There are two main options:

Bare trusts

The simplest approach. The child has a fixed right to the assets, but a trustee holds them until the child reaches 18 (or an older age you specify, like 21 or 25). Once they hit that age, they get everything, no conditions.

Bare trusts are straightforward and tax-efficient. Income is taxed at the child's own rates and allowances. But they're inflexible. If your circumstances change (a new marriage, more children), the trust can't adapt.

All bare trusts must now be registered with HMRC via the Trust Registration Service.

Discretionary trusts

More flexible. The trustees decide when and how much to distribute, based on the beneficiary's needs. This is useful when you're not sure a young person will be ready to handle a lump sum at 18, or when family circumstances might change.

The trade-off is complexity. Discretionary trusts have higher tax obligations, including periodic charges every 10 years and exit charges when assets are distributed.

Feature	Bare trust	Discretionary trust
Control	Child gets everything at specified age	Trustees decide when and how much
Flexibility	Low — fixed beneficiary, fixed age	High — adapts to changing needs
Tax on income	Child's own tax rates and allowances	Trust tax rates (higher)
10-year charges	No	Yes
HMRC registration	Yes (Trust Registration Service)	Yes (Trust Registration Service)
Best for	Simple gifts, stable circumstances	Complex families, larger estates

Trusts for beneficiaries

Sometimes a straightforward gift isn't the best option. Trusts give you more control over how and when your beneficiaries receive their inheritance.

Life interest trusts

Your beneficiary (the "life tenant") gets the right to live in a property or receive income from assets during their lifetime. When they die, the assets pass to someone else (the "remainderman", usually your children).

Common use: Protecting a surviving spouse while making sure the family home eventually goes to your children. Particularly important in blended families or second marriages.

Life interest trusts for spouses qualify for the IHT spousal exemption, so there's no inheritance tax charge when the trust is created.

Property protection trusts

A specific type of life interest trust focused on your home. Your share of the property goes into trust when you die. Your partner can continue living there, but the value is protected for your children.

Important: The property must be owned as tenants in common (not joint tenants) for this to work. If you own as joint tenants, the property automatically passes to the survivor regardless of what your will says.

Vulnerable beneficiary trusts

Designed for beneficiaries who are disabled or mentally incapacitated. These trusts have special tax advantages, no 10-year periodic charges and no exit charges. Income can be taxed at the beneficiary's own rates rather than trust rates.

Crucially, assets held in a vulnerable beneficiary trust are generally disregarded when assessing eligibility for means-tested state benefits like Universal Credit or PIP.

Leaving money to charity

You can name any UK-registered charity as a beneficiary. There's a significant tax incentive for doing so.

If you leave 10% or more of your net estate to charity, the inheritance tax rate on the rest of your taxable estate drops from 40% to 36%. This can actually benefit your family, the IHT saving can offset part of the charitable gift.

Example: On a taxable estate of £175,000 (above the nil-rate band), the difference is £7,000 less in IHT. That means leaving money to charity costs your family less than you might think.

Even if the original will didn't include a charitable gift, beneficiaries can redirect 10% to charity using a deed of variation within two years of death to unlock the lower rate.

Digital assets

Since the Property (Digital Assets etc) Act 2025 came into force in December 2025, digital assets like cryptocurrency, NFTs, and domain names are now recognised as personal property under English law. You can leave them to beneficiaries in your will, hold them in trust, or include them in your residuary estate.

However, many digital items are governed by platform terms of service. Social media accounts, streaming subscriptions, and digital libraries (ebooks, music) are typically licensed to you personally and can't be inherited. The law recognises your property rights, but it can't override a platform's contract terms.

What to include in your will: Cryptocurrency wallets, NFTs, valuable domain names, and any digital accounts with real financial value. Make sure your executor knows how to access them.

Overseas beneficiaries

You can name anyone in the world as a beneficiary. There are no restrictions on leaving gifts to people living overseas.

The key consideration is tax. If you're domiciled in the UK, your worldwide estate is liable for UK inheritance tax, regardless of where your beneficiaries live. The estate (not the beneficiary) is responsible for paying IHT before distributing gifts.

If the overseas beneficiary lives in a country that also taxes inheritances, double taxation relief may apply. The UK has double taxation agreements with several countries, including the US, Republic of Ireland, South Africa, the Netherlands, Sweden, and Switzerland.

Practical tip: Include full legal names and up-to-date addresses for overseas beneficiaries. Your executor needs to be able to find them.

Excluding someone from your will

You have the legal right to exclude anyone from your will, including your children, siblings, or a former partner. England and Wales law gives you testamentary freedom.

But exclusion doesn't always stick. Under the Inheritance (Provision for Family and Dependants) Act 1975, certain people can claim against your estate if they haven't received "reasonable financial provision." Eligible claimants include:

A current or former spouse or civil partner
A cohabiting partner of at least two years
Your children (biological or adopted, any age)
Anyone you were financially maintaining before your death

Claims must be made within six months of the grant of probate.

How to reduce the risk of a successful challenge

If you do want to exclude someone, take these steps:

Write a letter of wishes. This is a separate document explaining why you've made the decisions you have. It's not legally binding, but courts take it seriously. In the landmark case Ilott v The Blue Cross [2017], the Supreme Court considered the deceased's reasons for excluding her daughter when determining the outcome.

Be explicit in your will. Don't just leave someone out, state clearly that the exclusion is deliberate.

Get professional advice. A solicitor experienced in contested wills can help you draft provisions that are harder to challenge.

Making your beneficiaries clear

Ambiguity causes disputes. When naming beneficiaries:

Use full legal names (not nicknames or shortened names)
Include dates of birth where possible
Keep addresses current, especially for overseas beneficiaries
Review your will whenever your circumstances change (marriage, divorce, new children, death of a beneficiary)

Remember that marriage automatically revokes an existing will in England and Wales, unless the will was made "in contemplation of marriage." Divorce doesn't revoke your will, but under Section 18A of the Wills Act 1837, your ex-spouse is treated as if they died on the date of divorce, their gifts fail.

Questions to ask yourself

When choosing your beneficiaries, think about:

Is anyone close to you likely to need ongoing financial support after you die?
Would you want someone to inherit at a specific age or for a specific purpose?
Is there anyone outside your family you'd like to leave something to?
Is there anyone you want to exclude, and have you taken steps to make that exclusion robust?
Are there future life events (marriage, divorce, more children) that your plan should account for?
Do you have digital assets that should be included?

If you don't have a will yet, or if yours needs updating, writing a will with Octopus Legacy is £150 for a simple will. A will with trust is £450.

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Who can be a beneficiary in a will?

In England and Wales, almost anyone can be a beneficiary, individuals, charities, organisations, and even unborn children (via trust clauses). You can also set up trusts for pets. Children under 18 can be named as beneficiaries, but their inheritance must be held in trust until they reach adulthood.

What is a contingent beneficiary?

A contingent beneficiary inherits only if the primary beneficiary can't, usually because they died before the person who made the will. Naming contingent beneficiaries is important because without them, the gift may fall into the residuary estate or pass under intestacy rules. Most wills also include a survivorship clause requiring beneficiaries to survive by 28 days.

Can I leave money to a child under 18 in my will?

Yes, but children under 18 can't legally receive or manage their inheritance directly. The assets must be held in trust, either a bare trust (simple, child gets everything at a set age) or a discretionary trust (flexible, trustees decide when and how much to distribute). Both types must be registered with HMRC via the Trust Registration Service.

What happens if I don't name a beneficiary?

If you don't have a will, your estate is distributed according to the rules of intestacy. These prioritise your spouse or civil partner, then children, then other relatives in a fixed order. Unmarried partners, stepchildren, friends, and charities receive nothing under intestacy, no matter how close the relationship.

Can I exclude someone from my will?

Yes. England and Wales law gives you testamentary freedom to leave your estate to whoever you choose. However, certain people, including spouses, children, cohabiting partners, and financial dependants, can challenge your will under the Inheritance (Provision for Family and Dependants) Act 1975 if they haven't received reasonable financial provision. Claims must be made within six months of the grant of probate.

Do I pay less inheritance tax if I leave money to charity in my will?

Yes. If you leave 10% or more of your net estate to UK-registered charities, the inheritance tax rate on the rest of your taxable estate drops from 40% to 36%. This can actually benefit your family, the IHT saving partially offsets the charitable gift. Even if the original will didn't include a charity gift, beneficiaries can use a deed of variation within two years of death to redirect 10% and unlock the lower rate.

Can I leave digital assets like cryptocurrency to a beneficiary?

Yes. Since the Property (Digital Assets etc) Act 2025 came into force in December 2025, cryptocurrency, NFTs, and domain names are recognised as personal property under English law. You can leave them to beneficiaries in your will. However, social media accounts, streaming subscriptions, and digital libraries are typically governed by platform terms of service and may not be transferable.

What is the difference between a specific legacy and a residuary gift?

A specific legacy is a defined gift, like £5,000 or a particular piece of jewellery. These are paid out first from the estate. A residuary gift is whatever remains after all debts, taxes, expenses, and specific legacies are paid. Residuary beneficiaries bear the risk of estate shrinkage, if debts are higher than expected, their share reduces.