Hi there. Your legal options will depend greatly on the type of agreement you want to make between the beneficiaries of an estate. Below is some general information that may be of assistance.

A legal agreement can generally be made between anyone about any subject matter, provided several conditions are satisfied. An agreement will only be recognised as binding in the eyes of the law if an offer was made by one party and accepted by the other party, payment or something else of value changed hands, and the parties intended their arrangement to be legally binding. The law also requires the terms of a contract to be sufficiently certain, complete and not for an illegal purpose. If you satisfy each of these elements, the law will generally recognise your agreement as a binding contract.

In the context of an agreement between beneficiaries under an estate that is yet to be administered, some types of agreements are not valid. For example, before an estate is administered, a beneficiary cannot agree to give another person a specific asset or item of property from the estate that the beneficiary will be entitled to under the will. This is because the asset is considered ‘future property’. In other words, the beneficiary does not yet have any property to give.

However, it is generally possible for a beneficiary to assign their right to receive an asset or item of property from the estate before it is administered. Importantly, the beneficiary is assigning their right to receive the asset, rather than giving the actual asset. This is a technical legal distinction that requires expert drafting if it is to be included in an agreement between beneficiaries. There are also other formalities that must be complied with in these types of agreements.

Suggested way forward

While the type of agreement you want is not clear, it is important to note that some restrictions apply when dealing with property under an estate that is yet to be administered. Speaking to a lawyer will help you understand your legal rights and options. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.