When preparing a Will, most people focus on who will inherit their property, savings and other assets. But what happens if someone named as a beneficiary dies before the person who made the Will?​ 

This situation can raise an important legal question: Who receives the inheritance? Does it pass to the deceased beneficiary’s family, or does it become part of the estate and get distributed to the other beneficiaries? 

Generally, when someone named in a Will dies before the person who made it (the testator), the inheritance intended for that beneficiary may no longer take effect. This is known as a lapsed gift. If a gift “lapses”, it may become part of the remaining estate and be distributed to others according to the terms of the will or intestate laws.  

However, under Manitoba's The Wills Act, an inheritance does not always disappear when a beneficiary dies before the testator.  The Act contains a special provision that may allow certain family members to inherit in place of the deceased beneficiary.​​

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If the beneficiary is the testator’s child, descendant, or sibling and leaves descendants who are alive when the testator dies, the inheritance may pass to those descendants instead. This is known as the anti-lapse rule, which can help prevent an intended inheritance from being lost simply because the original beneficiary died before the testator.

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For example, a mother’s Will leaves $100,000 to her son. Her son dies before her, leaving behind two children. If the requirements of Manitoba’s anti-lapse provision are met, the law may allow the $100,000 inheritance to go to the son’s children.

Alternately, a Will can include specific instructions about what should happen if a beneficiary dies before the testator. For example, it may name an alternate beneficiary or provide that a gift should pass to the original beneficiary’s children if that beneficiary does not survive the testator.

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This is where the importance of a well-prepared estate plan comes into play. Clear instructions in a Will can help reduce uncertainty and make it easier for the executor to administer the estate according to the testator’s wishes. The wording of a Will matters because it can affect how an inheritance is ultimately distributed.

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Family circumstances can change over time. A beneficiary may pass away, a child or grandchild may be born, or relationships and financial circumstances may change. Reviewing your Will after significant life changes can help ensure that it continues to reflect your wishes.

DISCLAIMER: This article is written for informational purposes only and does not constitute legal advice.  The views expressed are solely the author’s and should not be attributed to any other party, including Meighen Haddad LLP.  If you need legal advice, please call our office at (204) 727-8461.