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Receiving Inheritance (Beneficiary Perspective)

Also known as: Legatee, Heir

Definition

Receiving an inheritance means getting the money, property, or possessions someone has left you in their will, typically 6-9 months after their death once the executor has completed all legal and financial requirements.

Understanding the inheritance process from a beneficiary's perspective helps you set realistic expectations about timing, know your legal rights, and make informed decisions about accepting or managing inherited assets.

What Does Receiving Inheritance Mean?

Under the Administration of Estates Act 1925, beneficiaries receive their inheritance after the executor obtains probate (if required), pays all debts and taxes, and distributes the estate according to the will or intestacy rules. Beneficiaries—sometimes called heirs or legatees—can be specific beneficiaries (receiving particular items), pecuniary beneficiaries (receiving fixed sums like £10,000), or residuary beneficiaries (receiving whatever remains after debts and other gifts are paid).

The typical timeline is 6-9 months on average, though straightforward estates may distribute within 3-4 months while complex estates can take 12 months or longer. Executors have a legally protected "executor's year"—12 months to administer the estate before beneficiaries can demand distribution. James was the residuary beneficiary of his father's £333,000 estate (house worth £280,000 plus savings). He received his inheritance eight months after death—a standard timeline for estates requiring probate and property sale.

Complex estates take longer. Emma was a residuary beneficiary of her aunt's £780,000 estate with UK and Spanish property. She received an interim payment of £15,000 after nine months, with final distribution 18 months after death once the Spanish property sold—reasonable given international assets.

Beneficiaries don't pay Inheritance Tax directly—the estate pays it before distribution. However, you may face income tax on rental income from inherited property or Capital Gains Tax when selling inherited assets that increased in value since the date of death. You can disclaim (refuse) your inheritance, but only before taking possession and you must refuse the entire gift. Be cautious if receiving benefits: disclaiming could be "deprivation of capital" and the DWP may still treat you as having received the money.

Common Questions

"How long does it take to receive inheritance after someone dies?" On average, beneficiaries receive their inheritance 6-9 months after the death, though this varies significantly. Straightforward estates may distribute within 3-6 months, while complex estates involving property, shares, or foreign assets can take 12 months or longer. Executors have a protected "executor's year" (12 months) to administer the estate before distribution is legally expected.

"Do I have to pay tax on inheritance I receive?" No, beneficiaries don't normally pay tax on inherited assets. The executor pays any Inheritance Tax due from the estate before distribution. However, you may face tax on income generated after inheriting (like rental income from inherited property) or Capital Gains Tax if you later sell an inherited asset that has increased in value since the date of death.

"What happens if I don't want to accept my inheritance?" You can disclaim (refuse) your inheritance, but you must do so before taking possession of the asset and you must refuse the entire gift—partial disclaimers aren't allowed. Be cautious: if you're receiving benefits, disclaiming could be seen as "deprivation of capital" by the DWP, and they may still treat you as if you received the money, affecting your benefits anyway. Always seek professional advice first.

Common Misconceptions

Myth: I'll receive my inheritance immediately after the funeral or within a few weeks.

Reality: Beneficiaries typically wait 6-9 months, and complex estates can take 12+ months. Executors have an "executor's year" (12 months) to administer the estate before beneficiaries can demand distribution. The process requires probate, asset collection, debt payment, and tax clearance.

Myth: As a beneficiary, I have to pay Inheritance Tax on what I receive.

Reality: The estate pays any Inheritance Tax due before distribution—by the time you receive your inheritance, all taxes owed by the deceased have been settled. However, you may face income tax on rental income from inherited property or Capital Gains Tax when selling inherited assets.

  • Executor: The person responsible for administering the estate and distributing your inheritance after completing probate and paying debts.
  • Probate: The legal process that must be completed before most distributions, typically taking 4-8 weeks for the grant.
  • Grant of Probate: The legal document the executor needs to access estate assets and distribute your inheritance.
  • Estate Administration: The overall process that receiving inheritance concludes, including probate, asset collection, and tax clearance.
  • Legacy: A specific gift you receive as a beneficiary, like £5,000 or particular items.

Need Help with Your Will?

Understanding what beneficiaries experience highlights why creating a clear will matters. A well-drafted will helps your loved ones receive their inheritance without unnecessary delays or confusion.

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Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.