What Happens If a Beneficiary Dies?
If a beneficiary of a will dies before receiving their inheritance, what happens depends on whether they died before or after the testator — and whether the will contains a substitution clause.
The Four Key Scenarios
The outcome depends on the specific circumstances. Here are the four most common scenarios.
Beneficiary dies before the testator (no substitution clause)
The gift lapsesIf a beneficiary dies before the person who made the will (the testator), and the will does not contain a substitution clause, the gift to that beneficiary lapses — it fails. The lapsed gift falls back into the residue of the estate and is distributed to the residuary beneficiaries.
Beneficiary dies before the testator (with substitution clause)
Gift passes to substituteA well-drafted will includes a substitution clause — for example, "to my daughter Jane, but if she predeceases me, to her children in equal shares". If the beneficiary dies before the testator, the gift passes to the named substitute instead of lapsing.
Beneficiary dies after the testator but before receiving inheritance
Gift passes to beneficiary's estateIf a beneficiary survives the testator but dies before the estate is distributed, the gift does not lapse. It forms part of the deceased beneficiary's own estate and passes under their will (or the intestacy rules if they had no will).
Child of testator dies before testator (s.33 Wills Act 1837)
Gift may pass to grandchildrenUnder section 33 of the Wills Act 1837, if a child or remoter descendant of the testator dies before the testator, leaving children of their own, the gift does not lapse — it passes to the deceased beneficiary's children instead. This statutory rule can be excluded by the will.
The Key Takeaway: Include Substitution Clauses in Your Will
The best way to protect against the risk of a beneficiary dying before you is to include substitution clauses in your will. A well-drafted will anticipates this possibility and names alternative beneficiaries for every significant gift. This is one of the most important reasons to have your will professionally drafted by a solicitor rather than using a DIY template.
Find out about making a will with PDA Law →Frequently Asked Questions
What happens if a beneficiary dies before receiving their inheritance?
It depends on whether the beneficiary died before or after the testator (the person who made the will). If the beneficiary died before the testator, the gift usually lapses (fails) unless the will contains a substitution clause. If the beneficiary died after the testator but before the estate was distributed, the gift does not lapse — it forms part of the deceased beneficiary's own estate.
If a beneficiary of a will dies, who gets the money?
If the beneficiary died before the testator: the gift lapses and falls into the residue of the estate (unless there is a substitution clause or the statutory rule in s.33 Wills Act 1837 applies). If the beneficiary died after the testator: the gift passes to the deceased beneficiary's own estate — distributed under their will or the intestacy rules.
What happens if the beneficiary of a will is dead?
If the beneficiary was already dead when the testator died, the gift to them lapses. The lapsed gift falls back into the residue of the estate. If the will does not specify what happens to the residue, or if the residuary beneficiary has also died, the estate (or part of it) may pass under the intestacy rules. This is why a well-drafted will includes substitution clauses and a clear residuary clause.
What is a lapse of gift in a will?
A lapse occurs when a gift in a will fails because the intended beneficiary died before the testator. The lapsed gift falls back into the residue of the estate. If the residue is also affected, the estate may pass under the intestacy rules. Lapses can be avoided by including substitution clauses in the will — for example, "to my sister, but if she predeceases me, to her children".
What is a substitution clause in a will?
A substitution clause names an alternative beneficiary to receive a gift if the primary beneficiary dies before the testator. For example: "I give my house to my son James, but if he predeceases me, to his children in equal shares." A well-drafted will should include substitution clauses for all significant gifts to avoid the risk of lapse.
Does a beneficiary need to survive the testator by a certain period?
Some wills include a survivorship clause — requiring a beneficiary to survive the testator by a specified period (typically 28 or 30 days) to inherit. This prevents assets passing twice in quick succession if both the testator and beneficiary die in the same accident. If the beneficiary does not survive the required period, the gift lapses or passes to the substitute.
What happens if a residuary beneficiary dies?
If the residuary beneficiary (the person who inherits everything left over after specific gifts) dies before the testator, the residue may pass under the intestacy rules — unless the will names a substitute residuary beneficiary. This is one of the most important reasons to keep your will up to date and to include substitution clauses.
Can a deed of variation help if a beneficiary has died?
A deed of variation can be used to redirect an inheritance after death — but only by living beneficiaries who have already inherited. It cannot be used to deal with a lapsed gift (where the beneficiary died before the testator). If you are concerned about the distribution of an estate, we can advise on the options available.
Speak to a wills and estates solicitor today. Sensitive, professional advice — costs explained clearly before any work begins.
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Whether you are making a will and want to protect against a beneficiary predeceasing you, or you are dealing with an estate where a beneficiary has died — we can help. No obligation to proceed after an initial discussion.