People die, and while they know who the dying would have liked to inherit their money, they don’t have a will in place, or at least not one that can be used to distribute the money.
Who gets the money if there’s no one to inherit from?
Of course, if you’re in charge of the estate, this isn’t something that happens regularly.
It’s a major deal to you right now, doesn’t it? As of right now.
In the wake of the loss of a loved one, it can be difficult to determine who should be the beneficiary of inheritance when you don’t know who the decedent was.
Fortunately, you won’t be the first person in this scenario to appear before the probate court. In pursuance of the law, the probate court will give you instructions on how the estate’s assets should be dispersed.
However, no one likes to enter a situation without some basic background information. New Jersey estate planning lawyer has gathered some of the most basic information to give you an idea of what to expect from the courtroom.
How Come No One Is Benefiting?
The absence of a will is the most common cause of an estate with no beneficiaries, although there are several other scenarios where this could occur.
- A beneficiary was mentioned in the will, but they have since passed away. Here’s an illustration: In his will and on each of his key accounts, Barry designated his wife, Maggie, as his sole beneficiary, including his retirement account and life insurance policy. Barry passed away before Margaret could be reunited with him. As a result, she was no longer entitled to the benefits.
- There was a beneficiary mentioned in the will, but then it was deemed void by the court. A will can be declared invalid for a variety of reasons. It is possible that the will was not signed or witnessed appropriately. A court could also conclude that the will was invalid because it was forged or compelled to be signed under duress. If there is no will, the government treats the succession case as though there were no identified beneficiaries and no executors.
- A beneficiary was listed on an account (including a retirement fund or an account payable on death), but that person has since passed away. It is not the only means to transfer property after death, and wills aren’t the sole option. A beneficiary can be specified in various documents, including wills, life policies, joint property tenancies, and pension or bank accounts. A deceased person is no longer eligible to receive the proceeds.
Behavioural Inheritance In The Event Of Death
In most circumstances where there is no heir, a process known as intestate succession occurs.
As a result of the Uniform Probate Code, most states have their own intestacy rules (the laws that control who inherits if there is no will). Assuming that the average individual has a valid will, these laws seek to ensure inheritance similarly.
Intestate succession, the following is the typical order of inheritance:
- The spouse of a deceased person
- A family member’s children, or even the offspring of a family member
- In-laws of the late
- Slain relatives’ siblings
- departed person’s paternal and maternal grandparents
- Relatives of dead members of the family
The surviving spouse may not be entitled to the entire estate under the Universal Probate Code. It’s important to note that the husband or wife gets a portion of the estate when one or both parents are still alive, but there are no children. The remainder is in the hands of the parents.
Legislation That Prevents The Passing Of Time
There is a difference between not having a will and having a will in which the lone beneficiary has died. No one knows what the deceased had in mind regarding the probate process. Consequently, the rule of intestate succession is imposed.
This time, the court knows exactly what the deceased wanted. They designated someone to receive the money. However, the beneficiary’s death means they will be unable to fulfil their wish.
A state’s intestate succession rules apply if there is no anti-lapse law. The outcome could, of course, be the same. For example, Margaret’s children from her relationship with Barry would be the first in line again for bequest if she died.
Execution In Cases Where There Is No Heir
Once you comprehend how intestate transmission works and how an estate might be left without a beneficiary, let’s speak about probate.
When a person dies, their estate has to go through probate. This means that a probate judge oversees the settlement of the deceased’s obligations and taxes, as well as the distribution of all their assets to the deceased’s beneficiaries.
While this may seem like a big deal, it’s not that dissimilar when there is no specific recipient. Once you’ve decided to initiate a probate case, you’ll need to apply with the court. The administration of an estate is still under the supervision of the court. Instead of depending mostly on the directions of a will to determine whether assets are divided, you’re more dependent on state law.