If your beneficiaries are dead
By Beth Newcomb
If you become incapacitated or die, proper estate planning is the key to ensuring your wishes are carried out. No less important is a periodic review of your documents once that plan is in place.
“It’s important to take a look at your will every few years to determine if the people you’ve named in it are still alive,” says John J. Urban, an attorney who has concentrated in estate management since the mid ‘70s.
John describes the events surrounding a man who passed away, leaving his estate to seven different beneficiaries.
The problem? Two were dead. The question became who would inherit on behalf of the two dead beneficiaries.
“If you don’t have language in your will that dictates what will happen should one of your beneficiaries die before you, the law states the beneficiary’s children inherit his or her portion. If that person’s children are dead, the estate goes to the children’s children,” John explain. “You can see how easily an estate can become complicated in situations like this.”
Such was the case with the man who died with two dead beneficiaries.
“It took a considerable amount of time and calculation to determine the shares belonging to the heirs of the two dead beneficiaries,” John says. “One person ended up inheriting 1 1/22 of the estate.”
John says another reason to ensure your beneficiaries are alive is to preserve your intentions.
“If you don’t have a provision for the redistribution of your estate in your will should a beneficiary die, consider scheduling a time to meet with me to make that revision,” he invites. “That way, your assets can be distributed the way you intend, and your estate won’t be eaten up by unnecessary costs.”
For Mimi readers, John provides a free, 45-minute legal services consultation in person or on the phone and offers his services at a contracted discount rate. Be sure to mention this story when you schedule an appointment. House calls and select evening appointments available.
To reach attorney John J. Urban, call 440-846-0000, ext. 227. His offices are located at 11221 Pearl Road, in Strongsville. Visit the website at JJUrbanLaw.com.