Should a loved one have passed away recently and you believe you might be included in their will, you might be unsure of what to do next.
A person who will inherit property upon the death of another is known as a beneficiary of a will. Information about their inheritance is contained in the will.
If you’re a beneficiary, you might be wondering, “When will the will be read to me after death?” In the past, legal experts like solicitors would read out a will to beneficiaries shortly after a person passed away. Having a will read is a thing of the past, even though you might still see things like this on TV and in movies.
Losing an inheritance can be a devastating experience, especially if you were counting on that money to help you achieve your financial goals. While there are a few situations in which a beneficiary can lose their inheritance, it is important to remember that these situations are relatively rare.
In most cases, beneficiaries will receive their inheritance even if they refuse to sign off on the deceased’s last will. However, there are a few exceptions to this rule. For example, if the beneficiary is a minor, they may not be able to receive their inheritance until they reach the age of majority. Additionally, if the beneficiary is convicted of a crime, their inheritance may be forfeited to the government.
In some cases, a beneficiary may choose to waive their inheritance. This means that they are giving up their right to receive any money or property from the estate. Beneficiaries may choose to waive their inheritance for a variety of reasons, such as if they do not need the money or if they do not want to be involved in the probate process.
If you are concerned about losing your inheritance, it is important to speak with an attorney. An attorney can help you understand your rights and options and can advise you on the best course of action to take.
What Happens to an Inheritance If a Beneficiary Has Died?
If a beneficiary dies before they can inherit, the assets will pass to their heirs based on the terms of their will or (if they died intestate) state law. This is called a “lapsed devise.”
In some states, the assets will become part of the deceased beneficiary’s estate. This is based on what are called “anti-lapse” laws, meaning laws that specifically address the issue of a lapsed devise. The assets which would go to your beneficiary instead go to their heirs based on the terms of their will or (if they died intestate) state law.
If no anti-lapse laws apply, then the assets revert back to the estate. They then pass as a standard residuary. This means that the assets have no clear heir under your will, the same as if you had not named a beneficiary at all. From there, the property will typically move in two ways.
First, your residual beneficiary will inherit if you have one. A residual beneficiary is the person or persons you named to inherit any unclaimed assets in your will. In most wills, it’s a good idea to have one and naming a residual beneficiary can be as simple as just adding “all else to this individual.” At the end of the will’s distributions, if there are any remaining assets, this person claims them.
Second, if you have no legitimate or living residual beneficiary, state law applies. When a will has residual benefits and no heir to claim them or if the residual beneficiary themselves has died, typically states distribute the property under their intestacy laws. This means that those specific assets pass to your heirs as defined by state law just as if you had no will at all.
Estate Planning Tips
The best way to avoid these issues is by writing your will thoroughly and with care. Here are a few tips for writing a will:
- Name your beneficiaries clearly and specifically. This will help to avoid any confusion about who should inherit your assets.
- Consider naming alternate beneficiaries. This will ensure that your assets will be distributed according to your wishes even if your primary beneficiary dies before you.
- Review your will regularly. As your life circumstances change, you may need to update your will to reflect those changes.
- Speak with an attorney. An attorney can help you create a will that meets your specific needs and ensures that your wishes will be carried out.
Losing an inheritance can be a difficult experience, but it is important to remember that it is relatively rare. In most cases, beneficiaries will receive their inheritance even if they refuse to sign off on the deceased’s last will. However, there are a few exceptions to this rule. If you are concerned about losing your inheritance, it is important to speak with an attorney. An attorney can help you understand your rights and options and can advise you on the best course of action to take.
Wills can be tricky to find
We frequently talk to friends and family who are positive that a loved one left a will before passing away but are unable to locate it. You can create a will at Farewill right now.
Here are some things you could try if you find yourself in this circumstance:
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A thorough search of your loved one’s property
In addition to going through all the documents and filing cabinets, people occasionally keep their wills in odd locations like the basement or loft, under the floorboards, or under the bed mattress.
- Consult your neighbors, relatives, other acquaintances, and the will’s witnesses.
They may remember from a previous conversation the location of the will’s storage.
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Check with the bank
Even though banks don’t often provide their storage services to clients these days, it’s still a good idea to inquire about the possibility that they may have safe custody of any personal documents.
Certain banks do provide will writing and executor services; if they are named executors or wrote the will, they may have retained the original document.
Executors have certain duties they need to carry out
An executor of a will has a crucial responsibility to ensure that the decedent’s wishes are carried out. We’ve set out the duties of an executor here.
The executor is required to always act in the estate’s best interest. They ought to maintain thorough records of every penny coming into and going out of the estate. After the estate administration is finished, it is also regarded as best practice for executors to give beneficiaries a copy of the final accounts.
Will beneficiaries get taxed on their inheritance?
FAQ
Can you lose an inheritance?
Can someone remove you as a beneficiary?
How long does the average inheritance last?
What is inheritance conflict?
What happens if a beneficiary declines to accept an inheritance?
When a beneficiary of your trust declines to accept their inheritance, they “disclaim” the inheritance. It is surprisingly more common than you would think. There are a few reasons why someone might decline an inheritance, including: They don’t want the responsibility that comes with the asset.
What happens if a beneficiary dies before inheriting?
If the beneficiary dies before meeting the terms of a survivorship requirement it is treated as though they died before inheriting. The same rules apply, meaning that the assets would pass first to any alternates, then to any lapsed devise or residual heirs and finally through state inheritance law.
What happens if a beneficiary receives an inheritance in their name?
However, when beneficiaries receive their inheritance in their name outright, that needlessly exposes the legacy you leave to the claims of creditors, lawsuits, divorce, the loss of governmental benefits they might otherwise receive and even a second estate tax when they die.
Why do some beneficiaries prefer not to receive inherited assets?
Unlikely as it may seem, there are some beneficiaries who prefer not to receive inherited assets. The reasons vary. Often the beneficiary would like the assets—such as a traditional or Roth IRA or other inherited retirement plan—to be given to someone else. Other times the intended beneficiary does not want to be taxed on the assets.