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Receipt and Discharge

Also known as: Beneficiary Receipt, Discharge Document

Definition

A receipt and discharge is a document signed by a beneficiary confirming they've received their inheritance and releasing the executor from further responsibility for that distribution.

This paperwork creates written proof that protects both parties—the beneficiary has evidence of what they received, and the executor has proof they fulfilled their legal duty correctly.

What Does Receipt and Discharge Mean?

A receipt and discharge serves two distinct legal functions. The receipt element acknowledges the specific assets or money received, including the amount and date. The discharge element releases the executor from further legal claims regarding that distribution. Under the Administration of Estates Act 1925, executors have fiduciary duties—legal obligations to act in beneficiaries' best interests—and obtaining proper documentation fulfills those duties. This practice is well-established in UK probate procedure, supported by Law Society guidance.

The process varies by what you're inheriting. For simple cash legacies, a straightforward receipt suffices. Sarah receives a £10,000 cash legacy and signs a receipt acknowledging the amount and date. For residuary beneficiaries who inherit what remains after debts and gifts, a formal process applies. James receives 50% of the residuary estate worth £180,000—he reviews full estate accounts, then signs a formal discharge confirming accuracy and releasing the executor from liability.

The document typically includes beneficiary details, the amount or assets received, the date, confirmation of receipt, a release from liability, and the beneficiary's signature. Both parties should keep copies. Without signed receipts, executors face years of potential personal liability if a beneficiary later claims non-receipt or incorrect payment.

Common Questions

"Why does an executor need me to sign a receipt and discharge?" The receipt proves you've received your inheritance and releases the executor from further responsibility. It protects both parties—you have written proof of what you received, and the executor has evidence they fulfilled their duty. Without signed receipts, executors can remain personally liable for years.

"What should I check before signing a receipt and discharge?" Verify the amount or assets match what you actually received, check the estate accounts are accurate and complete, and ensure you understand what rights you're releasing. You typically release the executor from claims about that specific distribution, not from fraud or negligence. Never sign before receiving your inheritance.

"Can a receipt and discharge protect an executor from everything?" No, a receipt and discharge only protects executors from honest mistakes and proper administration. It cannot protect them from fraud, gross negligence, or deliberate wrongdoing. If an executor acted dishonestly, beneficiaries can still bring claims despite having signed a discharge.

Common Misconceptions

Myth: I don't need to sign a receipt if I trust the executor—it seems unnecessary paperwork

Reality: Even with complete trust, receipts protect both parties legally. If questions arise years later from HMRC, other beneficiaries, or creditors, written proof is essential. Executors can face personal liability without receipts, and beneficiaries lack proof of inheritance received. Trust doesn't replace documentation in legal matters.

Myth: Once I sign a receipt and discharge, I can never challenge the estate administration

Reality: A receipt and discharge releases the executor from liability for that specific distribution only, and only if administered honestly and competently. You can still challenge fraud, concealment of assets, or gross negligence. The discharge protects proper administration, not wrongdoing. However, you cannot later claim you received less than stated on the receipt.

  • Final Distribution: The stage when executors distribute inheritances and obtain receipts and discharges from beneficiaries as proof of completed distribution.
  • Beneficiary: The person who receives an inheritance and signs a receipt and discharge to acknowledge what they've received.
  • Executor: The person responsible for administering the estate who obtains receipts and discharges to protect against future liability.
  • Estate Administration: The complete process of managing a deceased person's estate, which includes obtaining receipts and discharges as a final step.
  • Completion of Administration: The point when estate administration is finished—executors cannot consider administration complete until all beneficiaries have signed receipts and discharges.

Need Help with Your Will?

Understanding how receipts and discharges work helps you plan your estate properly. Choosing reliable executors who will obtain proper documentation protects your beneficiaries and ensures smooth estate administration.

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Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.