What is a beneficiary?
A beneficiary is a person or organisation entitled to receive something from a will, trust, pension, or life insurance policy. In a will, a beneficiary might receive a specific item, a fixed sum of money, or a share of the residue — what is left after debts, taxes and specific gifts have been paid. A charity can be a beneficiary too.
Detailed explanation
"Beneficiary" simply means someone who benefits. In estate planning, the main types of beneficiary under a will are:
- Specific beneficiary — receives a particular item, such as a piece of jewellery or a named painting.
- Pecuniary beneficiary — receives a fixed sum of money (a "legacy").
- Residuary beneficiary — receives a share of the residue, the remainder of the estate after debts, taxes, expenses and the specific and pecuniary gifts are met. Residuary beneficiaries usually inherit the bulk of an estate.
Beneficiaries can also arise outside a will — for example, the person you nominate to receive your pension, or the named beneficiary of a life insurance policy or a trust. These often pass independently of the will.
A beneficiary has the right to receive their inheritance once the estate has been properly administered, and can generally ask the executor for the estate accounts and reasonable progress updates; residuary beneficiaries have the strongest right to information. However, a beneficiary cannot direct how the executor runs the estate, and may have to wait while debts and taxes are settled.
One important rule: a beneficiary (or their spouse or civil partner) must not witness the will. Under section 15 of the Wills Act 1837, doing so makes the will valid but cancels their gift. A beneficiary can, however, be an executor — that overlap is very common and entirely lawful.
In his will, Arthur leaves his watch to his nephew (a specific gift), £5,000 to a charity (a pecuniary legacy), and "everything else" equally to his two children (the residue). His children are the residuary beneficiaries and inherit the bulk of the estate. They can ask Arthur's executor for the estate accounts, but must wait until debts and any tax are paid before receiving their shares.
Sources
- Wills Act 1837, section 15 — legislation.gov.uk
- GOV.UK — Make a will
- Citizens Advice — Wills and what they can cover
- Reviewed by
- ClearLegacy editorial team
- Last reviewed
- June 2026
- Next review
- December 2026
- Jurisdiction
- England & Wales
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