What Happens if My Beneficiaries Have Already Died?
When you and your lawyer write your will, you write it assuming the named beneficiaries will be alive when you pass away. However, sometimes beneficiaries pass away early. And not everyone updates his or her will to keep up to date with those kinds of unfortunate and significant changes
If you don’t change your will and one of your named beneficiaries has already passed away, then the probate court will award your assets to the beneficiary’s natural successors. For example, if you name your sister as the beneficiary of your house, but she has already passed away, then your sister’s spouse and children will step in as the beneficiaries. If you have a family member you specifically, don’t want to gain from your assets, then you will have to work with your estate planner to word the document in exact and specific ways.
Several kinds of investment accounts, banking accounts, and life insurance rewards have built-in requests and/or requirements that force you name both a primary and secondary beneficiary. These documents will often take precedence over your will. Be sure to review these documents alongside your other estate planning documents to ensure there are no conflicts.