Getting started on your estate planning journey can be a terrific way to preserve your assets and provide for your loved ones after you’re gone. However, life can be unpredictable.
What happens if a beneficiary suddenly dies before the person who made the will or trust? This can be a confusing and even heated time among surviving family members. Understanding how to handle predeceased beneficiaries in your estate plan can help ensure your wishes are fulfilled.
What you need to know
When a beneficiary passes away before you do, the outcome depends on a few key factors. Your current estate plan plays a significant role in determining what happens next. Here’s what you need to know:
- Wills: If your will doesn’t mention predeceased beneficiaries, California state law might decide how assets get shared.
- Trusts: A well-written trust can give specific instructions for different scenarios, including if a beneficiary dies first.
- Per stirpes vs. per capita: These are ways to divide assets among surviving family members, and they can have very different results.
- Backup beneficiaries: Naming alternates can help keep your plan on track if your first choice of beneficiary is no longer around.
Knowing about these ideas can help you make smart choices about your estate plan. But remember, every situation is different.
How can you plan for this possibility?
Planning ahead can make a big difference in how your representative handles your estate. To protect your estate and your beneficiaries, consider taking these steps:
- Look over and update your estate plan regularly
- Add backup beneficiaries to your will and trust documents
- Say clearly how you want assets shared if a beneficiary dies unexpectedly
- Think about using a trust for more control over how assets are given out
A solid estate plan can give you and your loved ones peace of mind. By thinking through different scenarios, including the chance a beneficiary might die before you, you can create a thorough plan that honors your wishes, prevents family conflict and safeguards your legacy.