The last thing you expect when planning your estate is for one of the Beneficiaries named in your Will to pass away. Unfortunately, this can be devastating, especially because you likely anticipated them to outlive you, as they were named in your plan. If this occurs, understanding what this means for your Will is critical. The following explores what you should know about your estate plan after a beneficiary has passed away, as well as the importance of discussing your circumstances with a Medina County, Ohio Will preparation lawyer.
What Is a Beneficiary in a Will?
The Beneficiary of a Will is someone named to inherit a portion of your estate after your passing. Beneficiaries play a critical role in estate planning, as without them, you have no reason to plan an estate.
Without creating a Will and naming Beneficiaries, you’ll find that you will be considered to have died “Intestate.” As such, the state of Ohio will assume control of your estate and distribute your property according to the “Intestate Line of Succession.” This is a predetermined order of your next-of-kin to receive inheritances. In Ohio, if you have a spouse and children, your spouse will inherit the entirety of your estate. However, if you have a spouse and a child from someone other than your spouse, you’ll find that your spouse will inherit the first $20,000 and half of the remaining estate, while your children split the rest.
If you have no surviving kin, including non-immediate family like aunts, uncles, cousins, neices, or nephews, you’ll find that the state can assume ownership of your entire estate. However, this is rare, as they state will explore all avenues to find any surviving relatives. This does mean your assets could end up in the hands of someone you did not intend to include in your estate plan, however.
Will My Will Change if a Beneficiary Has Passed Away?
It’s imperative to understand how the death of a Beneficiary can impact your Will. Typically, when drafting your Will, your attorney will create two options of how this matter should be handled. The first is that your Will will lapse. Essentially, this means that the inheritance intended for them will no longer be in effect. For example, if you have 5 children, you may have decided to split your entire estate among them evenly. However, if one child passes away, the funds intended for them would be reallocated and divided evenly among your four surviving children.
The other option you can include as a condition of your Will upon its creation is to pass the inheritance of a deceased party Per Stirpes. Essentially, this means that the inheritance intended for a beneficiary will be reallocated and divided among their children.
However, you also have the option of adding a Codicil to your Will, which acts as an amendment. This allows you to change the terms and conditions of the inheritance according to your wishes.
As you can see, navigating the death of a Beneficiary can be incredibly difficult. Unfortunately, it’s imperative to handle these matters, as your estate could be left vulnerable otherwise. That is why it’s in your best interest to connect with an experienced attorney from Krause Law. Our team understands how overwhelming it can be after a beneficiary has passed away, which is why our firm will do everything possible to help you through these matters. Contact us today to learn more.
