What Will Happen if The Primary Beneficiary Is No Longer Alive?

It is crucial to have a thoroughly assessed estate plan. The creation Has a significant impact on the future of your loved ones. It is created while keeping in mind that the trust’s beneficiaries will live more than the creator. This is generally the norm. However, often the beneficiaries of the estate pass away. Contact an estate planning attorney in Ridgeland if you experience confusion regarding the inheritance of the estate held by the beneficiary.

A beneficiary is anyone who the estate creator lists for inheriting the decided amount of estate after their death. They are one of the integral parts of an estate plan as they are why the planning is done so that they can inherit the assets. 

In a properly created estate plan, there will be various kinds of beneficiaries like primary as well as contingent. Often, the beneficiaries are people or organizations. Primary beneficiaries are those people or organizations who are allowed to get an inheritance from the trust or will of the deceased person firstly. On the other hand, contingent beneficiaries involve those individuals or organizations that inherit the assets if the primary beneficiaries are no longer alive. The contingent beneficiaries are also referred to as secondary beneficiaries.

Death of beneficiary

If the beneficiaries of a trust or Will are deceased, the creator of the will can make amendments to their estate plans so that different people can inherit the assets. It is suggested to consider all the possibilities before preparing an estate plan so that no complications occur later. This helps in remaining prepared for any unforeseeable circumstances.

While listing the beneficiaries of your estate plan, make sure to consider the events following the death of one of the beneficiaries and its impact on the plan. If the beneficiary dies before the creator of the estate plan, The inherited assets will no longer be effective. However, if situations occur, the remaining beneficiaries generally divide the assets evenly among themselves to reduce the chances of a conflict. Other than that, it is suggested to make amendments in case the beneficiaries pass away. They can also list alternative beneficiaries who inherit the asset if the original beneficiary dies. 

In cases where no alternative beneficiaries are listed, the assets are provided to the research groups or religious centers. It is also given to charities in some cases. This helps in utilizing the estate for good use.