Legal Implications of Using Stored Genetic Material after Death

November 12, 2024

In today’s world, advances in reproductive technology allow for the possibility of using stored genetic material, like sperm or eggs, even after someone has passed away. While this opens doors to new family options, the National Library of Medicine warns of legal challenges to keep in mind. There are legal implications of using stored genetic material after death that are vital to understand.

One of the primary legal issues surrounding posthumous reproduction is whether the deceased has given explicit consent. In many jurisdictions, laws regarding this issue remain ambiguous. Some courts have permitted the retrieval of genetic material, such as sperm, shortly after death. However, questions about how and when it can be used often go unresolved until much later.

For instance, in certain countries like Australia, legal ambiguity surrounds both the retrieval and use of gametes (sperm and eggs). Even if sperm is retrieved with court permission, it may face legal barriers to being used later. In the U.S., there are limited regulations directly governing posthumous reproduction. It typically falls on medical professionals and private fertility clinics to establish protocols.

Another important consideration is the inheritance rights of children conceived after the death of one or both parents. The Uniform Probate Code in the United States has specific guidelines when genetic material is used after death. It requires that a deceased individual’s consent to posthumous reproduction be proven either in writing or through other clear evidence.

For the resulting child to have inheritance rights, conception must occur within a set timeframe after the parent’s death—either within 36 months of the death or born within 45 months of it. These timeframes help keep inheritance disputes to a minimum. However, they also add a layer of complexity to estate planning. If you are considering freezing genetic material for future use, clearly documenting your intentions is vital.

Courts often face difficult decisions when receiving a request to use stored genetic material. In one notable case, the mother of a young man who passed away unexpectedly in a motorcycle accident sought permission to retrieve and use his sperm. The court granted her request. However, there were no clear guidelines on whether it would be legally permissible to use the sperm to conceive a child.

In some jurisdictions, courts have allowed the retrieval of genetic material for medical purposes, interpreting organ donation laws to include sperm or eggs as a form of tissue. However, when using the retrieved material for reproduction, the legal situation becomes more complicated, with varying rulings based on specific case circumstances.

A highly emotional and legally complex issue arises when parents wish to use their deceased child’s genetic material to have a grandchild. In some cases, courts have granted permission to parents to retrieve and use their child’s genetic material, citing the deceased’s potential wishes and the strong relationship between the child and parents. However, this practice is not universally accepted. Many jurisdictions have strict limitations on who can request the use of stored genetic material after death.

The legal landscape around posthumous reproduction is still evolving. There are many uncertainties that families may face when navigating these issues. Whether you are considering freezing genetic material or wondering how to address this situation in your estate plan, it’s essential to consult with a probate lawyer to ensure that your wishes are legally documented.

If you’re concerned about the legal implications of using stored genetic material after death, or the inheritance rights of posthumously conceived children, now is the time to start planning. If you would like to learn more about inheritance rights, please visit our previous posts.

Key Takeaways:

Clarify Legal Consent: Ensure explicit consent for the use of stored genetic material after death to avoid legal complications.
Secure Inheritance Rights: If clear documentation is in place, posthumously conceived children may have inheritance rights.
Complex and Ambiguous Laws: Understand that courts may allow genetic material retrieval but could restrict its use.
Protect Family Interests: Estate planning with a probate lawyer ensures that your family’s rights and wishes are honored.
Plan for the Future: Including posthumous reproduction in your estate plan helps protect both your genetic legacy and your loved ones.

Reference: National Library of Medicine (Aug. 7, 2018) “Creating life after death: should posthumous reproduction be legally permissible without the deceased’s prior consent?”

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Estate Planning for a Child with Addiction

November 6, 2024

Estate planning for a child with addiction is not just about leaving them an inheritance — it’s about ensuring that the inheritance supports their recovery and future well-being. Parents often find themselves facing tough decisions when their child struggles with substance abuse. However, creating a plan with clear goals can provide a sense of control and security for everyone involved, as per Kiplinger.

When a child has an addiction, direct access to their inheritance can do more harm than good. A well-structured trust can help protect the child and their financial future, especially when the trustee has clear instructions and guidance on handling distributions.

What kind of trust should you set up for a child with addiction? Trusts designed for minors or those with intellectual disabilities may not be appropriate in this case, since the goals are very different. For children struggling with substance use, a trust must account for their unique needs and the challenges they may face in their recovery journey.

A trust for a child with a substance use disorder can either play an active or passive role in their recovery. Some parents may prefer a trust focusing solely on the child’s basic needs — housing, food and healthcare. Others may want a more proactive approach, where the trustee is involved in the child’s treatment plan, helping to pay for rehabilitation, therapy and ongoing support.

Parents should discuss with their estate planning attorney how they want the trust to work. Should it fund recovery efforts? Should distributions only be allowed if the child is making progress toward recovery? Having these conversations ahead of time ensures that the trust aligns with the parents’ goals and the child’s long-term needs.

Understanding the recovery process is essential to structuring estate planning for a child with addiction. Recovery doesn’t happen overnight. Many children go through several stages before they reach a place of stability, and setbacks are common. In fact, relapses are often part of the process.

One model of behavioral change, known as the Transtheoretical Model, suggests that recovery involves several stages, including:

Precontemplation: The child is not yet ready to address their addiction.
Contemplation: They recognize the problem but feel conflicted about taking action.
Preparation: The child begins making small changes and planning more significant steps.
Action: The child actively works to change their behavior and engage in recovery.
Maintenance: They develop coping strategies to maintain sobriety.
Relapse: Relapse is common but can be seen as part of the learning process.

A trust designed to support recovery should not penalize the child for relapsing. It should instead provide resources to help them get back on track and continue their journey toward a healthier future.

Incentives can be a helpful tool in encouraging a child with addiction to stick to their recovery plan. However, offering cash as an incentive is generally not recommended, as it can lead to a greater risk of relapses.

Incentives should instead be non-monetary, such as paying for a vacation, using a vehicle, or covering the cost of a fitness membership. The trustee should be able to decide when the child has met the goals necessary to earn these incentives. This approach helps ensure that rewards begin with genuine recovery progress.

When planning for a child with addiction, the right estate plan can make a significant difference in their recovery and long-term well-being. By setting up a specialized trust, you can offer them the support they need without the risk of enabling harmful behavior.

Don’t leave your child’s future to chance—take control by working with an experienced estate planning attorney who can help you structure a plan that aligns with your goals and safeguards your child’s inheritance. If you would like to learn more about estate planning for complicated family histories, please visit our previous posts.

Reference: Kiplinger (Mar. 8, 2019) “Designing Trusts for Substance Abuse Problems“

Testamentary Trust can Protect your Intellectual Property

November 4, 2024

When managing your estate, people often overlook intellectual property (IP). If you are an artist, inventor, or business owner, your IP can be one of your most valuable assets. Incorporating IP into your estate plan is crucial to ensure that it benefits your heirs, primarily through a testamentary trust. A testamentary trust can protect your intellectual property.

A testamentary trust is created as part of your will and only takes effect after you pass away. It allows you to name a trustee who will manage the trust’s assets, including your intellectual property, to benefit your chosen beneficiaries. According to Forbes, by establishing a testamentary trust, you choose how to handle your IP and ease the burden on heirs.

For those with valuable intellectual property—such as copyrights, trademarks, patents and trade secrets—a testamentary trust can effectively safeguard and distribute these assets after you’re gone.

Intellectual property is often complex and requires ongoing management. Here are a few reasons why a testamentary trust can help:

Ongoing Management Needs: IP may need someone with knowledge of the field to manage it properly. Your beneficiaries might not be familiar with your creations’ legal rights or value, so appointing a trustee ensures that someone experienced handles these responsibilities.
Protecting Financial Interests: If your IP continues to generate revenue (e.g., royalties from books, music, or inventions), a trustee can distribute these funds according to your instructions.
Avoiding Probate Delays: By placing your IP in a trust, the assets can bypass probate, ensuring that they are handled efficiently without long delays or court involvement.

According to Charles Schwab, it’s essential to identify the types of intellectual property you own. Some common forms of IP you might place in a testamentary trust include:

Copyrights: If you’ve created original works, like books, music, or artwork, a copyright allows you to control their use and distribution. These assets can be precious and may need careful management to ensure continued profitability.
Patents: For inventors, patents provide exclusive rights to their creations. By placing them in a trust, you ensure that they are protected and passed on to your heirs in a controlled manner.
Trademarks: Your brand’s name, logo, or symbols may be essential for business success. A testamentary trust can keep these assets intact and help manage any ongoing legal protections they require.
Trade Secrets: If you’ve developed formulas, customer lists, or other confidential business information, you can protect them with a trust. A trustee can make sure they remain confidential and continue to benefit your heirs.

Appointing a knowledgeable trustee is critical to the success of managing your IP. This person or organization will be responsible for protecting your intellectual property, ensuring registrations are maintained and continuing to enforce your rights. They will also distribute any income from the IP according to the terms laid out in the trust.

When setting up a testamentary trust for your intellectual property, you can specify how long the trust will last. For instance, if you own copyrights, these can last for 70 years after your death, which means the trust may need to remain in effect for decades.

Carefully think about the future value of your IP and when it might be best for your heirs to take complete control of the assets. You can set specific milestones, such as when your children reach a certain age or achieve educational goals.

Intellectual property can be a critical asset in your estate plan. However, it requires careful management to ensure that it benefits your loved ones. Using a testamentary trust, you can protect and leverage your intellectual property in ways that align with your values. If you would like to learn more about testamentary trusts, please visit our previous posts.

References: Forbes (Jan. 24, 2024) “What Is A Testamentary Trust?” and Charles Schwab (Jun. 14, 2024) “4 Steps to Help Protect Your Intellectual Property“

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Proper Estate Planning can Protect Couples with Big Age Gaps

October 30, 2024

A decade-sized age gap doesn’t seem like much when you are 38 and he’s 57. However, as you get older, the age difference can lead to challenges, including those concerning estate planning and long-term care. Proper estate planning can protect couples with big age gaps. There needs to be enough resources for the surviving spouse if the older spouse passes first, which isn’t always the case. According to a recent article, “Estate Planning for May—December Couples,” from Next Avenue, finances, wills and estate plans must consider the age difference.

The U.S. Census Bureau reports the average age gap in traditional marriages as 3.69 years. However, in some Western countries, about 8% of all traditional couples have an age gap of 10 years or more.

One couple had a nearly 20-year age gap when they sat down with an advisor. The husband had three grown children from a prior marriage and didn’t want to put his second wife’s financial security in jeopardy if he should die first. His will needed to be drafted so she would inherit the home outright, while also providing his three children with an equal share of remaining assets after a certain period.

Naming someone who is not also a beneficiary to be the executor of your estate may be especially helpful here. Someone who isn’t going to benefit from an inheritance may be more objective about how assets are distributed. During their years of practice with families of all types, experienced estate planning attorneys see all kinds of family situations, including couples in subsequent marriages with large age gaps. They can help navigate the best way for wealth to be distributed to protect both the younger spouse and any children from prior marriages.

A few essential tasks:

Review and update beneficiary designations on accounts like life insurance, retirement accounts and other assets.

Be clear in conversations about your intentions for personal property and document your wishes in your will. Family disputes over heirlooms, regardless of their value, can happen if you haven’t put those wishes in writing.

If the older spouse dies and the young one remarries, it’s possible the new spouse could inherit the older spouse’s assets unless good estate planning is done. The older spouse may consider leaving assets in a marital trust designed to benefit the surviving spouse. This way, the surviving spouse has access to funds as needed. However, upon the surviving spouse’s death, the assets go to the older spouse’s other beneficiaries.

Couples should always have a Power of Attorney, Health Care Power of Attorney and Living Wills created when working with an estate planning attorney. The medical power of attorney allows another person to make medical decisions in case of incapacity. A Living Will outlines what treatments you do or don’t want if you are terminally ill or injured. These documents vary by state and, just like your will, should be personalized to reflect your wishes. An estate planning attorney will show you how proper estate planning that can protect couples with big age gaps. If you would like to learn more about planning for couples, please visit our previous posts.

Reference: Next Avenue (Sep. 5, 2024) “Estate Planning for May—December Couples”

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Grandparents Raising Grandchildren need Specialized Estate Planning

October 28, 2024

Grandparents raising grandchildren need specialized estate planning. Navigating these issues can feel overwhelming. A skilled lawyer can help you understand your estate planning options and secure your grandchild’s future.

According to AARP, grandparents responsible for their grandchildren must often establish a legal relationship to care for them fully. Without this, you may face difficulties enrolling them in school, getting medical care, or making important decisions on their behalf. Here are the primary options to consider:

Guardianship: This legal arrangement allows grandparents to decide about their grandchildren’s health, education and welfare. However, it is important to note that guardianship doesn’t always sever legal parenthood and may leave the biological parents with some authority.
Grandparent Power of Attorney: A power of attorney (POA) for grandparents is much more flexible than guardianship. This makes it suitable as a temporary solution. It confers the power to make decisions, such as enrolling a child in school or seeking medical treatment.
Adoption: Adoption is the most permanent option, since it legally transfers all parental rights to the grandparents. Once completed, all legal rights to the child transfer from the biological parents to you.

Each of these legal tools comes with specific responsibilities and levels of authority. Therefore, it’s crucial to consult with an estate planning attorney to choose the best path for your family.

In some states, consent laws allow you to enroll a child in school or access medical care without a formal legal relationship. These laws allow caregivers to sign an affidavit confirming they are the primary caregiver, which may be enough to get the child’s medical services or educational enrollment. However, these laws vary by state, so you must check the rules in your area or consult an attorney.

Many grandparents worry about the financial burden of raising grandchildren, especially without formal legal arrangements. Public benefits are fortunately available for children that don’t require grandparents to have custody or guardianship. Programs such as Social Security benefits, child support, or foster care payments can help ease the financial strain. Your income may sometimes not even be counted when determining the child’s eligibility for assistance.

An article from the Chillicothe Gazette discusses an interview with Southeastern Ohio Legal Services attorney Sierra Cooper, where she covered adoption by grandparents. Among other topics, Sierra discussed how the power of attorney or caretaker authorization could provide a quicker route to gaining legal rights.

Sierra also discussed guardianship and adoption as complex but more permanent options. While the process can be challenging, legal tools are available to provide simple, short-term answers as well as enduring solutions.

Estate planning goes beyond simply caring for your grandchild while you’re alive. A solid estate plan will make all the difference if something happens to you. You can outline a guardian and backup guardian to take over raising them or establish a trust to manage their inheritance.

Grandparents may also want to consider durable powers of attorney and advance healthcare directives for themselves. These documents outline your wishes in case of an emergency.

If you are a grandparent raising grandchildren. or anticipate that you may need to take on this role, it’s essential to have specialized estate planning in place. By acting now, you can protect your grandchildren’s future and ensure that they have the support they need. If you would like to learn more about planning for grandparents, please visit our previous posts.

References: AARP (Aug. 11, 2011) “Raising Grandkids: Legal Issues” and Chillicothe Gazette (Oct. 8, 2018) “Need to help care for grandchildren? Here’s some legal tips”

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Estate Planning When You’re Single

October 24, 2024

Estate planning when you’re single can be daunting when there is no one to assist you. For one woman, the wake-up call arrived when listening to a friend explain all the tasks she needed to perform for her 91-year-old mother, whose needs were increasing rapidly. Solo agers, people who are growing older without spouses, adult children, or other family members, are now a significant part of the older population, says the article “Going Solo: How to Plan for Retirement When You’re on Your Own” from The New York Times.

Seniors who are married or have adult children have many of the same retirement planning issues as their solo ager counterparts. However, figuring out the answers requires different solutions. Managing future healthcare issues, where to live and how to ensure that retirement savings lasts needs a different approach.

Options must be addressed sooner rather than later. Estate planning is a core part of the plan. While you can’t plan everything, you can anticipate and prepare for certain events.

Determining who you can count on in a healthcare crisis and to handle your financial and legal issues is key. This is challenging when no obvious answers exist. However, it should not be avoided. You’ll need an estate plan with advance directives to convey your wishes for medical treatment and end-of-life care.

An estate planning attorney will help draw up a Power of Attorney, so someone of your choice can step in to make legal and financial issues if you become incapacitated. You’ll also want a Healthcare Proxy to name a person who can make medical decisions on your behalf if you can’t communicate your wishes. While it’s comfortable to name a trusted friend, what would happen if they aren’t able to serve? A younger person you know and trust is a better choice for this role.

A Last Will and Testament is needed to establish your wishes for distributing property. Your will is also used to name an executor who administers the will. Think about people you trust who are a generation or two younger than you, like a niece or nephew or the adult child of someone you know well. You’ll need to talk with them about taking on this role; don’t spring it on them after you’ve passed. Just because someone is named an executor doesn’t mean they have to accept the role.

Where you age matters. From safety and socialization standpoints, aging alone in a single-family home may not be the best option. Having a strong network of friends is important for the solo ager. Moving to a planned community with various support systems may be better than aging in place. Explore other housing options while you are still able to live on your own, so you can make an informed choice if and when the time comes for community living.

Estate planning when you’re single doesn’t have to be a headache. A combination of professional help will make the solo aging journey better. An experienced estate planning attorney, financial advisor and health insurance source can help you navigate the legal and business side of your life. Check with your town’s senior center for available social services and activities resources. If you would like to learn more about planning as a single person, please visit our previous posts.

Reference: The New York Times (Sept. 21, 2024) “Going Solo: How to Plan for Retirement When You’re on Your Own”

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Gen Zers Need Estate Planning

October 23, 2024

Gen Zers need estate planning. They may still be young, ages 17–27. However, this doesn’t mean some don’t have ownership and assets to protect with estate planning. Medical emergencies and car accidents happen to people of all ages. An estate plan protects the person as much as their property. The sooner you have a plan in place, says a recent article from yahoo! finance, “Why Gen Z Should Be Thinking About Estate Planning,” the better.

For many young adults, estate planning is like buying rental insurance. You don’t expect to deal with a fire or have your home broken into. However, having insurance means if such events happen, your possessions will be insured, and you’ll be made whole.

Gen Zers who are signed up for employee benefits like 401(k)s or retirement plans already have assets to be passed to another person if they should die young. These accounts typically feature beneficiary designations, so they should be sure to have those completed properly. Many Gen Zers name their parents or siblings as their beneficiaries at this point in their lives. The future may bring new relationships, marriage and children, so they must update these beneficiaries throughout life.

While practically everyone using a cell phone or computer has digital assets, Gen Zers are likely to have more digital currency and crypto in digital wallets. They may have intellectual property on platforms, including TikTok or YouTube. These assets need to be protected in a digital estate plan. The information required to access these accounts should not be in a last will and testament. However, they should be documented so the assets are not lost.

Other digital assets don’t have any value. Users don’t have the right to transfer the assets, like social media accounts or music files. Having a conversation with a digitally savvy person about these assets and providing them with login and account information is an integral part of an estate plan.

Gen Zers do need a will. Without a will, the estate will get tangled up in probate, a court process where the laws of your state determine who inherits any possessions. This takes time and court fees can add up quickly.

Having a will created with an experienced estate planning attorney encourages a review of assets, providing a perspective of finances that one might not otherwise have early in their career.

Estate planning also includes planning who will make medical and financial decisions in case of incapacity. These documents, including a Power of Attorney, Healthcare Proxy, Living Will and other documents, are state-specific. Once someone becomes a legal adult, neither parents nor siblings can be involved with medical care or handle finances, unless these documents are created and executed. Trusted friends can also take on these roles.

Gen Zers need estate planning. They should make an appointment with a local estate planning attorney. They’ll provide guidance through the process. Regardless of age and stage, having a plan creates peace of mind for young adults and their family members. If you would like to learn more about planning for young adults, please visit our previous posts.

Reference: yahoo! finance (Sept. 17, 2024) “Why Gen Z Should Be Thinking About Estate Planning”

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How to Leave an Inheritance to Your Child but Not Their Spouse

October 21, 2024

As a parent, you’ve likely spent years building up your savings and assets, hoping to leave a legacy for your children. However, one concern many parents have is ensuring that the inheritance they pass on stays with their child and doesn’t end up benefiting a spouse. Whether out of love for your children or worrying about future divorces, it’s natural to consider inheritance planning strategies to safeguard your hard-earned assets. If you are concerned about your child’s relationship, you will want to learn how to leave an inheritance to your child but not their spouse.

A trust is one of the most common and effective ways to ensure that your child is the sole benefactor of their inheritance. By setting up a trust, you control how and when your assets are distributed. A trust can be created now while you’re still alive or can take effect upon your passing.

You can name the trust as the beneficiary of your retirement accounts, life insurance, or other assets. The trustee, a person you designate, will follow your instructions regarding when and how the money or property is given to your child.

While prenuptial agreements used to carry a certain stigma, that is no longer the case. These agreements have become more common, especially among younger generations. A prenuptial agreement is signed before marriage and details how a couple’s financial matters will be handled in case of a divorce.

If your child is open to the idea, they can use a prenuptial agreement to protect their future inheritance. This legal document can specify which assets belong to your child, preventing a spouse from making any claims.

If your child is already married, safeguarding their inheritance is still an option. A postnuptial agreement works similarly to a prenuptial agreement but is signed after the wedding. This document can outline which assets, including future inheritances, will remain separate in the event of a divorce.

Discussing a postnuptial agreement might feel tricky, as it requires open communication between your child and their spouse. However, it can be essential for ensuring that your child’s financial future remains protected.

While legal strategies like trusts, prenuptial agreements and postnuptial agreements are essential to inheritance planning, financial tools also play a role. Working with a trusted estate planning professional who provides the legal competence and the knowledge to examine your complete financial background can help you evaluate the best way to structure your assets and accounts to minimize potential risks. They can guide you on which accounts to designate for inheritance and which might be more vulnerable to claims in a divorce.

If you’re ready to protect your child’s financial future, an estate planning attorney will show you how to leave an inheritance to your child, but not their spouse. If you would like to learn more about inheritance planning, please visit our previous posts.

Reference: Northwestern Mutual (Apr. 22, 2022) “Can I Leave Money to My Kids But Not Their Spouses?”

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The Estate of The Union Season 3|Episode 10 is out now!

October 17, 2024

The Estate of The Union Season 3|Episode 10 is out now! In his prior legal life, Brad Wiewel was a family attorney for about ten years. That work helped him understand at a very deep level the challenges of single parenthood.

One of those is making sure plans are in place in case the single parent dies or becomes mentally incapacitated – which is something that rarely comes to mind. That’s because other, seemingly more urgent needs crowd it. In this episode of The Estate of the Union, Brad discusses WHY single parents MUST do estate planning!

He also discusses guardianship, (Who is going to raise the children) and HOW money can be spent -and by whom!

Brad has always had a passion for helping single parents and this edition of The Estate of the Union may be one of the most important ones we have produced. We hope you find it beneficial to you or a loved one.

In each episode of The Estate of The Union podcast, host and lawyer Brad Wiewel will give valuable insights into the confusing world of estate planning, making an often daunting subject easier to understand. It is Estate Planning Made Simple! The Estate of The Union Season 3|Episode 10 is out now! The episode can be found on Spotify, Apple podcasts, or anywhere you get your podcasts. If you would prefer to watch the video version, please visit our YouTube page. Please click on the links to listen to or watch the new installment of The Estate of The Union podcast. We hope you enjoy it.

Texas Trust Law focuses its practice exclusively in the area of wills, probate, estate planning, asset protection, and special needs planning. Brad Wiewel is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. We provide estate planning services, asset protection planning, business planning, and retirement exit strategies.

The Difference Between an Heir and a Beneficiary

October 15, 2024

When it comes to estate planning, it’s essential to understand the difference between an heir and a beneficiary. While these terms are often used interchangeably, they have distinct meanings that can affect who receives your assets after you pass away. According to Nerd Wallet, knowing how heirs and beneficiaries work is key to ensuring that your estate plan reflects your wishes and protects your loved ones.

An heir legally inherits property from a person who dies without a will, a situation called dying intestate. When someone dies intestate, the state’s probate court follows local laws to determine who the heirs are and how the property should be distributed.

The closest relatives are usually given priority. For example, a spouse or children are often the first to inherit, followed by parents and other family members like siblings, nieces and nephews. The specifics depend on your state’s inheritance laws, so it’s always wise to understand how this works in your area.

If you have a will or trust, heirs are not automatically guaranteed to inherit your property, unless they are named beneficiaries.

A beneficiary is a person or entity specifically named in a will, trust, or other legal document to inherit assets. Unlike heirs, beneficiaries can include family members, friends, charitable organizations or even pets.

Beneficiaries are designated through estate planning tools such as wills, trusts, or life insurance policies. You can name specific people to receive certain assets and include instructions on what should happen if one of your beneficiaries cannot inherit. This flexibility allows you to customize your estate plan according to your specific wishes.

If you pass away without a will, the court will decide who your heirs are based on state law. On the other hand, if you have a will or trust, you get to choose your beneficiaries. Doing this prevents you from leaving the decision to the court, ensuring that your assets are distributed the way you want.

For example, if you want your spouse to inherit most of your assets but also wish to leave a portion to a close friend or charity, you can name them as beneficiaries in your estate plan. This way, you control who inherits your estate instead of relying on default state laws.

If you don’t have a will or don’t name beneficiaries on key assets, such as life insurance policies or retirement accounts, your loved ones may have to go through the probate court process. The court will use intestacy laws to determine your heirs and distribute your assets, which might not align with your wishes.

In some cases, if no heirs can be found or named, your estate could go to the state through a process called escheat. This situation can leave your family without the inheritance you intended for them. Create a clear, legally binding estate plan that outlines who your beneficiaries are to avoid these outcomes.

Naming beneficiaries in your estate plan is straightforward but requires careful thought and organization. Here’s how you can start:

Take inventory of your assets – Make a list of everything you own, including property, investments and sentimental items.
Decide who will benefit from your estate – Consider who would benefit the most from your assets. You can choose close family members, friends, or even charitable organizations.
Name beneficiaries in a will or trust – Work with an estate planning attorney or use an online service to create a will or trust that clearly outlines your beneficiaries.
Update your beneficiary designations—Name beneficiaries directly on assets like life insurance policies or retirement accounts. This ensures that the assets pass directly to them, avoiding probate.

By understanding the difference between an heir and a beneficiary, you can use estate law to control the legacy you leave behind. If you would like to learn more about heirs and beneficiaries, please visit our previous posts.

Reference: NerdWallet (Nov. 13, 2023) “What Is an Heir? Meaning and Types”

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Blog Articles

Legal Implications of Using Stored Genetic Material after Death

Estate Planning for a Child with Addiction

Testamentary Trust can Protect your Intellectual Property

Proper Estate Planning can Protect Couples with Big Age Gaps

Grandparents Raising Grandchildren need Specialized Estate Planning

Gen Zers Need Estate Planning

How to Leave an Inheritance to Your Child but Not Their Spouse

The Estate of The Union Season 3|Episode 10 is out now!

The Difference Between an Heir and a Beneficiary

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