If someone named in your Will dies before you and there’s no backup beneficiary, the gift you intended for them may not go where you expected. This often means delays, confusion, and extra stress for your family members.
At Bayside Wills & Estates, we often see Wills that haven’t been updated in years, still naming people who have since passed away. Here’s what happens when a beneficiary dies, how lapsed gifts work in Victoria, and why you need substitution clauses in your Will.
A Gift Can Lapse If a Beneficiary Has Died
In Victoria, if someone named in your Will dies before you, and there’s no alternate named, that gift may “lapse” — meaning it fails.
Without a clear substitute:
- The gift may fall into the residuary estate, or
- Be distributed under intestacy laws, not necessarily to the people you’d choose
Many people think a gift will go to the deceased beneficiary’s children, but that only happens if your Will specifically says so.
This is common in Wills that:
- Name elderly parents or siblings
- Were written many years ago
- Don’t include backups or clear ‘what if’ instructions
What Is a Substitution Clause in a Will?
A substitution clause (or gift over) lets you name a backup beneficiary.
E.g.: “If [beneficiary] dies before me, I leave this gift to [alternate person].”
Without a substitution clause, your gift might not reach the right people, especially in blended families or complex estates. Adding a backup is a simple way to avoid problems later.
Note For Executors: What If a Beneficiary Has Already Died?
If you’re an executor and someone named in the Will has died:
- Check for a substitution clause
- Determine whether the gift lapses or flows to the residuary estate
- Seek legal advice — this can affect probate and delay distribution
Bayside Wills & Estates helps executors across Brighton and Bayside Melbourne resolve these issues quickly and correctly.
Don’t Forget Other Legal Documents
Wills aren’t the only place a named person matters. Also check:
- Superannuation death benefit nominations – must be updated with your fund
- Enduring Powers of Attorney – review if your appointed attorney has died or is no longer suitable
Keeping these documents up to date protects your overall estate plan.
When to Review Your Will
You should review your Will any time someone named in it dies, especially a primary beneficiary, executor, or guardian.
Other key triggers include:
- New property, relationship or children
- A divorce or separation
- Major changes to your financial situation
Read more: Life Events That May Require Updating Your Will
Don’t Let a Missing Clause Derail Your Estate Plan
If someone in your Will dies before you, the fallout can be bigger than most people expect. We’ve covered how lapsed gifts work and why planning ahead matters for your peace of mind and your family’s future.
Key Takeaways
- Gifts in your Will can lapse if the beneficiary dies before you
- Always include substitution clauses to cover these situations
- Executors should check for these clauses and seek advice if needed
- Superannuation and Powers of Attorney should also be reviewed
- A quick Will review now can prevent disputes and delays later
If your Will is a few years old or names someone who has died, now is the time to update it. We help clients across Melbourne’s Bayside review, update, and finalise Wills to match their current life circumstances.
Book your consultation or download our free guide: Getting Your Ducks in a Row — Top 11 Estate Planning Mistakes to Avoid.
