{"id":151,"date":"2019-03-22T08:40:52","date_gmt":"2019-03-22T15:40:52","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/probate\/?p=151"},"modified":"2022-11-14T14:53:40","modified_gmt":"2022-11-14T21:53:40","slug":"beneficiary-dies-before-probate-completed","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/probate\/blog\/beneficiary-dies-before-probate-completed\/","title":{"rendered":"What Happens If a Beneficiary Dies Before Probate is Completed?"},"content":{"rendered":"
When a beneficiary to a will passes away after probate is opened but before the assets are distributed, the status of their inheritance will depend on the terms of the testator\u2019s will and the state\u2019s succession laws. In the state of Arizona, succession laws are based on the Uniform Probate Code (UPC<\/a>) and Arizona Revised Statutes Title 14 (ARS 14<\/a>).<\/p>\n If the testator names a beneficiary and specifically bequeaths assets to them in the will (e.g. \u201cthe house goes to my son, John Doe\u201d), then the bequeathed assets will become part of the beneficiary\u2019s estate.<\/p>\n In this example, John Doe\u2019s estate would receive the house, and the house would then pass to John Doe\u2019s beneficiaries according to his will. If there isn\u2019t a will then the estate is considered \u201cintestate<\/a>,\u201d and the house would transfer to John Doe\u2019s legal heirs according to the state\u2019s intestacy laws.<\/p>\n This practice applies if there are multiple beneficiaries, too. If the will states that the house goes \u201cto John Doe and Jane Doe\u201d, then both parties would have a 50% share of the inheritance. Their 50% share would transfer to their respective estates if they pass away before the inheritance is distributed.<\/p>\n The notable exception to this rule would be when a testator stipulates in their will that the beneficiary must be alive to receive their inheritance (e.g. \u201cthe house goes to my son, John Doe, if he is living\u201d). In this case, the beneficiary\u2019s estate would not be entitled to the inheritance. Instead, the inheritance would pass to the contingent beneficiary listed in the will.<\/p>\n In the absence of a contingent beneficiary, the inheritance would be subject to the state\u2019s intestacy laws and would pass to the decedent\u2019s legal heirs.<\/p>\n While it\u2019s usually best to explicitly name beneficiaries in your will, it\u2019s common practice to bequeath assets (or the entire estate) to a group of people. Common examples include parents who leave the entire estate \u201cto my children\u201d or an uncle who leaves specific assets \u201cto my nieces and nephews.\u201d<\/p>\n These are known as class gifts. Generally speaking, class gifts require the implied beneficiaries to be alive in order to receive their inheritance. If one of the beneficiaries dies during probate, then his or her share of the inheritance would be reallocated to the surviving beneficiaries.<\/p>\n In the state of Arizona, beneficiaries to a will must survive the testator by at least 120 hours (5 days) to receive their inheritance (ARS 14-2104<\/a>). This is known as the survivorship period.<\/p>\n A testator has the right to impose a longer survivorship period in their will, usually anywhere from a week to several months. If a beneficiary passes away after the testator but during the survivorship period, the beneficiary statutorily predeceases the testator and stands to lose their inheritance.<\/p>\n When a beneficiary listed in a will dies during the testator\u2019s lifetime, it\u2019s pretty easy to amend the will and replace the deceased beneficiary. That\u2019s obviously not an option when a beneficiary passes away after the testator, and it can be problematic when the beneficiary statutorily predeceases the testator by dying during the survivorship period.<\/p>\n Rather than leaving cases like this to the mercy of intestacy laws that may not necessarily honor the wishes of the decedent, Arizona has adopted anti-lapse laws that allow the children of beneficiaries to claim the inheritance. Under the state\u2019s anti-lapse laws, a child of the deceased beneficiary can claim their parent\u2019s share of the testator\u2019s inheritance if one of the following conditions are met:<\/p>\n The intent of anti-lapse laws is to ensure that the testator\u2019s assets end up where he or she would prefer. The assumption is that if the testator wanted a particular family member to receive an inheritance, it stands to reason that they\u2019d want the intended beneficiary\u2019s child to receive the inheritance in their place.<\/p>\n While this may not always be the case, it\u2019s usually better than leaving assets to impartial intestate succession laws that may gift assets to family members who are legal heirs but whom the decedent didn\u2019t get along with.<\/p>\n The ultimate fallback in probate is always intestate succession. If the will doesn\u2019t offer clear direction, if the conditions for the anti-lapse remedy aren\u2019t met, or if there isn\u2019t a will at all, the assets in question will transfer to the decedent\u2019s (not the beneficiary\u2019s) legal heirs in the following priority:<\/p>\n The right to representation<\/a> is similar to anti-lapse laws and allows the descendent of a legal heir to claim their deceased parent\u2019s or grandparent\u2019s share of the inheritance. For example, the decedent\u2019s niece can claim her deceased parent\u2019s share of the estate if a portion of the estate goes to the decedent\u2019s siblings.<\/p>\nDoes the will specifically name a beneficiary?<\/h4>\n
Does the will bequeath assets to a group?<\/h4>\n
Is There a Survivorship Period?<\/h4>\n
What Happens when a Beneficiary Predeceases the Testator?<\/h4>\n
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What Happens with Intestate Succession?<\/h4>\n
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What to Do If You Are Entitled to a Deceased Beneficiary\u2019s Inheritance<\/h4>\n