People choose their beneficiaries based on their personal relationships and obligations. People with resources often name their spouses, children and grandchildren as their beneficiaries. Friends and other extended family members may also be beneficiaries of an estate.
Usually, testators with estate plans understand they must update their documents if a beneficiary dies before they do. However, sometimes the beneficiary dies after the testator, preventing any modification of the existing documents.
What happens if someone who could have inherited from an estate also dies before the completion of estate administration?
Deceased beneficiaries can still inherit
In some cases, testators may have planned in advance for the possible death of a beneficiary. Their wills and trusts can include language that allows the surviving spouse or progeny of a beneficiary to receive their inheritance if they die while estate administration is still underway.
Without specific language addressing this unusual and challenging situation, state law typically determines what happens next. Under current state statute, if a beneficiary outlives a testator by five days or more, the law recognizes their right to inherit from the estate of the testator. If they die at the same time or in the first days after the testator dies, then the courts may eliminate their inheritance unless testamentary documents provide other instructions.
Expanding an estate plan to address unusual but challenging situations can help people avoid probate disputes that damage family relationships. A plan that addresses the death of a beneficiary is often stronger and less likely to trigger conflict than documents that assume beneficiaries should outlive a testator.