For most individuals, the main advantage of drafting an estate plan is being able to know for sure what will happen to their assets after they pass away. If everything goes according to plan, your estate’s assets are dispersed exactly as your trusts’ or wills’ instructions specify. But what happens to the assets if an intended beneficiary or heir fails to make a claim? The Knoxville probate attorneys at Stivers Law outline what happens to an inheritance in Florida if no one makes a claim. https://youtu. be/3o1bB3BrRNM.
It can be a bittersweet experience to inherit property from a loved one, full of both happiness and sorrow. But occasionally, an inheritance is left unclaimed, leaving many people curious about what happens to those assets.
Understanding the Probate Process
Before delving into the fate of unclaimed inheritances, let’s first understand the legal process that follows a death. Upon someone’s passing, their estate, comprising all their assets, enters a legal process called “probate.” This process ensures the proper distribution of assets according to the deceased’s wishes, as outlined in their Will or trusts.
Beneficiaries and Heirs
Individuals who inherit through a Will are known as “beneficiaries,” while those who inherit assets not specified in a Will are called “heirs.” If the deceased died without a Will they are said to have died “intestate” and their assets are distributed according to the state’s intestate succession laws.
How Can an Inheritance Go Unclaimed?
There are two main scenarios where an inheritance can go unclaimed:
- Beneficiary/Heir Cannot Be Located or Fails to Claim: Even when a beneficiary or heir is identified, they may be difficult to locate or simply fail to claim their inheritance.
- No Beneficiaries/Heirs Exist: In the absence of any beneficiaries or heirs, the assets “escheat” to the state.
What Happens to Unclaimed Assets?
If all attempts are unsuccessful in locating and distributing assets to the rightful heirs, those assets will ultimately come into state ownership. Laws require financial institutions and property owners to notify the state of any unclaimed assets after a predetermined amount of time, usually five years. The state’s unclaimed property agency receives these unclaimed assets and holds them until the rightful owner claims them.
How to Find Unclaimed Inheritances
You can quickly look up any unclaimed inheritance you may have online if you think you may have one. You can search a searchable database maintained by the National Association of Unclaimed Property Administrators (NAUPA) to find unclaimed property in each of the 50 states. You can also check the “Treasure Hunt” website for unclaimed assets in Florida.
Seeking Legal Counsel
If you have questions or concerns about unclaimed inheritances, seeking guidance from an experienced probate attorney is highly recommended. They can provide valuable insights into the legal process and assist you in navigating the complexities of claiming your rightful inheritance.
Additional Resources:
- Unclaimed Inheritance: What Happens To It? (Stivers Law)
- What Happens With Unclaimed Inheritance in a Will? (Trust & Will)
Frequently Asked Questions:
- How long do I have to claim an inheritance?
The time limit for claiming an inheritance varies from state to state. It’s best to consult with your state’s controller’s office for specific information.
- What happens if I don’t claim my inheritance?
If you don’t claim your inheritance, it will eventually become the property of the state.
- How can I find out if I have an unclaimed inheritance?
You can search for unclaimed inheritances online using the resources mentioned above.
- What do I need to do to claim my inheritance?
The process for claiming an inheritance varies depending on the state. It’s best to contact your state’s unclaimed property agency for specific instructions.
Understanding the Probate Process
Understanding the legal procedure that occurs after a death is helpful before talking about what happens to an unclaimed inheritance. An estate is the collection of material and immaterial possessions that a deceased person owned at the time of death. The decedent’s estate goes through the formal procedure known as “probate” in order to guarantee that those assets are transferred appropriately. In the event that the deceased person left a will, its provisions govern what happens to the assets named in the will. Anyone who inherits through a Will is referred to as a “beneficiary. ” If the decedent died without a Will, the decedent is said to have died “intestate. ” Assets left out of a Will are also considered intestate assets. Anyone who inherits intestate property is referred to as a “heir,” and intestate assets are distributed in accordance with the state’s intestate succession laws. ”.
How Can an Inheritance End Up Unclaimed?
There are two ways in which assets can end up unclaimed. The first occurs when an identified beneficiary or heir to the estate is lost or does not make a claim to the inheritance. The second way occurs when no beneficiaries/heirs exist in which case assets “escheat” to the state.
Beneficiaries and/or heirs are identified and informed that the estate is being probated and that they may be eligible to receive an inheritance during the probate process. After that, the beneficiary or heir must take the appropriate steps to either claim the inheritance or, if they so choose, to disclaim it. A well-drafted Will should specify who will receive the beneficiary’s portion of the estate if the beneficiary passed away before the decedent. Similarly, in the event that there are no heirs from the immediate family, the state’s intestate laws require that the inheritance be given to more distant relatives. To put it briefly, the purpose of probate laws is to transfer all of a deceased person’s assets to a relative in the event that a will is unable to do so.