QLD Transfer Inheritance to Another Beneficiary?

[A. Beneficiary]

Can a beneficiary named in a will instruct the executor of a will to transfer their inheritance to another person or persons who may not be named in the will? E.g. Can an adult child of the testator nominate their own children (grandchildren of the testator) as substitutes to receive their share of the inheritance ?
If so, does this then make the grandchildren legal beneficiaries of the deceased estate?

 

[Sophea]

Hi A. Beneficiary,

Yes you can do whatever you like with your inheritance - including gifting it to your children - so long as you are alive when the person who you are inheriting from dies. In addition, I would imagine you could instruct the executor to pay your inheritance into whatever account or transfer into whatever name you wish. However, I don't believe the person to whom you are transferring gains any status under the will. I.e. you will remain the beneficiary, but you have disposed of your inheritance.

 

[Tracy B]

Hi A. Beneficiary,

I agree with Sophea above. During the distribution stage, the executor will coordinate with each beneficiary, let them know how much (or what items) they are entitled to and ask them:

• Whether they want the item (you are entitled to refuse e.g. because it has too many debts attached to it)
• If you accept, how to transfer the item

Technically, the executor is supposed to transfer to the beneficiary who is then free to transfer the item to any one else they please. However, you can agree directly with the executor to transfer the item directly to a third person. If you decide on this, you should write these instructions down expressly in writing, and the executor needs to agree on it beforehand.

 

[A. Beneficiary]

Hi A. Beneficiary,

Yes you can do whatever you like with your inheritance - including gifting it to your children - so long as you are alive when the person who you are inheriting from dies. In addition, I would imagine you could instruct the executor to pay your inheritance into whatever account or transfer into whatever name you wish. However, I don't believe the person to whom you are transferring gains any status under the will. I.e. you will remain the beneficiary, but you have disposed of your inheritance.

Thank you Sophea, Does this mean that Centrelink would deem that I have received the inheritance and gifted it to my children ?

 

[Sophea]

Yes.