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. In general, the death of a Beneficiary prior to the death of a Testator or the execution of the Will results in the lapse of the inheritance, division in accordance with per stirpes provisions, or Ohio State Intestacy laws. 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.

Examples of Who Can Be Named as a Beneficiary

The Beneficiary of a Will can be almost anyone of the Testator’s choosing, though this mostly commonly includes their family members. Regardless, individuals commonly named as Beneficiaries of a Will include:

  • Immediate family members
  • Extended relatives
  • Close friends
  • Charities and non-profits
  • Religious organizations and community groups
  • Educational institutions or scholarship funds

What Happens if You Do Not Name Beneficiaries?

In Ohio, if you do not have a Will, your assets will be distributed in accordance with the Ohio Intestate laws of succession. As such, 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, nieces, or nephews, you’ll find that the state can assume ownership of your entire estate. However, this is rare, as the 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.

For individuals living in Medina County and the surrounding communities, Intestate succession laws can have a significant impact on how a Will is distributed. Because Ohio has a predetermined line of succession, many residents opt to review their plan periodically to ensure it accurately reflects their wishes.

What Happens if a Beneficiary Passes Before the Person Who Created the Will?

In the event a Beneficiary named in the will passes away before the Testator, their portion of the inheritance may be handled in a number of ways depending on the Will’s language and Ohio State law.

When an Inheritance “Lapses”

When an inheritance left to a Beneficiary cannot be given to that individual due to death, their inheritance will “lapse.” This essentially means the gift is no longer valid. As such:

  • The inheritance may be redistributed among surviving Beneficiaries
  • The asset may become part of the residual estate
  • The inheritance may be distributed in accordance with other instructions in the Will
  • The executor may reallocate assets if the Will allows them to do so

When Assets Pass Per Stirpes

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.

Can You Update Your Will if a Beneficiary Dies in Ohio?

You should understand that, though you may have established a Will, it is not permanent. As the circumstances of your life change, the terms and conditions of your Will may need to be adjusted. As such, if a Beneficiary passes away, you may wish to update your documents to ensure your wishes are still accurately reflected.

Using a Codicil to Modify Your Will

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 such, a codicil may allow you the opportunity to:

  • Reallocate assets originally intended for the deceased Beneficiary
  • Name a new Beneficiary to inherit certain assets
  • Adjust percentages of inheritances between existing Beneficiaries
  • Clarify instructions for estate distribution
  • Update Executor or Trustee appointments, if necessary

When Creating a New Will May be More Appropriate

Under certain circumstances, you may benefit more from establishing a new Will as opposed to adding a Codicil. This may be beneficial when:

  • Your existing Will already has multiple Codicils
  • You have acquired considerable assets
  • Several Beneficiaries have changed
  • Your family structure has changed
  • You wish to simplify the administration of your estate

Contact an Experienced Medina, Ohio Estate Planning Attorney

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.