What Happens to a Will if a Beneficiary Passes Away?

If you’re like most people, finalizing your estate plan can lift a considerable weight off your shoulders. It’s important to understand, however, that circumstances may arise that require you to make changes and modifications. Unfortunately, one of these circumstances can arise if a Beneficiary passes away. If this reflects your situation, the following blog explores what you should know about these complicated matters, including the importance of discussing these circumstances with a Medina County, Ohio Will preparation lawyer.

What Is a Will?

A Will is generally regarded as one of the most important estate planning documents you can establish. By creating a Will, you can dictate how you would like your estate handled upon your passing. This allows you to determine what assets you would like to give away, including real estate, bank accounts, businesses, personal property, vehicles, and even investments. Aside from determining what assets to give, you can also clearly explicate which Beneficiaries you would like to inherit this property. It’s also important to understand that there is no rule regarding who you can appoint as a Beneficiary. This means you can essentially name anyone, from friends and family to charity and other non-profit organizations.

If you do not create a Will, you will be considered to have passed “Intestate.” As such, the state of Ohio will assume control of your estate, and distribute assets according to the Intestate Line of Succession, which is a predetermined method of dividing the assets of someone without an estate plan. This means someone you do not want to receive a portion of your estate could end up with a considerable amount of assets.

When a Beneficiary Passes Away, What Happens?

When you receive news that one of the Beneficiaries named in your Will has passed away, it can be devastating. Navigating the grieving process can be overwhelming and complicated, so it’s important to take time to process this matter.

One question you may have following the death of your loved one is the impact it can have on your established estate plan. Unfortunately, the answer will depend on the language used in your Will. When you work with an attorney to create your Will, they can explain options for including terms and conditions that address these matters. As such, you may have “per stripes,” terms, which essentially means that the inheritance the Beneficiary would have received will be distributed among their descendants. Additionally, their inheritance can “lapse,” which means the gift is treated as though it was never bestowed upon the deceased. The asset would then become part of the Intestate estate.

If you want to update the terms and conditions of your estate plan, you may wish to add a Codicil to your Will. This acts as an amendment, allowing you the opportunity to make minor changes to your estate plan, like reallocating assets or naming a new Beneficiary to inherit certain property following the passing of another.

Trying to navigate updating a Will while grieving the loss of a loved one can be an incredibly complicated process. As such, it’s critical to connect with an experienced attorney with Krause Law if a beneficiary passes away to explore your legal options during these difficult times. Our firm will help you explore your options so you can make the best decision for your circumstances. Contact us today to learn more.