Designating an Heir Apparent for Wills and Probate
Designating an Heir Apparent for Wills and Probate
Heir apparent refers to a person designated to receive property bequeathed through a last will and testament. Within the U.S. every Will must include at least one heir apparent, but property can also be gifted to multiple heirs and beneficiaries.
The person deemed heir apparent within the Will cannot be displaced from receiving inheritance gifts. In essence, this title places them next in line to receive estate assets, even if the person is not a blood relative of the decedent. A good example is that of a surviving spouse.
If a person dies intestate, without a legal Will, estate assets are distributed according to provisions set forth in state probate law. Rightful heirs are typically established based on lineage such as parents, siblings, children, and grandchildren.
While most people have direct lineage heirs, there are some who do not. When decedents die intestate and heirs cannot be located, estate assets are held by the state. This is referred to as the 'escheat' period. During escheat, direct lineage heirs can lay claim to inheritance.
The same holds true when heirs are designated within in Will, but cannot be located. Inheritance gifts will be held by the state until missing heirs present a valid claim. States publish public notices regarding escheat estate assets in local newspapers and unclaimed inheritance from wills databases.
It is estimated 9 of 10 Americans has unclaimed money sitting in state warehouses. Anyone with deceased relatives should consider searching government money databases, such as Unclaimed.org. Unclaimed inheritance property can be sold through public auctions once the escheat period expires.
Engaging in estate planning is essential for protecting valuable property. Several options are available, so it is best to consult with a professional estate planner or probate attorney. Individuals with small estates may only need to execute a last will and testament, while those with larger estates may require a trust.
The Will is an essential element for probate and trust management. All estates that are not protected by a trust must undergo the probate process. This is required to determine estate value; assess appropriate estate and inheritance taxes; legally transfer titled property; and ensure heirs receive intended inheritance property.
Property transferred to trusts is exempt from probate and oftentimes exempt from inheritance tax. Additionally, the Will remains private, whereas with probate the Will becomes a matter of public record. Probated estates must be settled before inheritance property is distributed to heirs. With trusts, property is distributed in expedient fashion.
Trusts are typically reserved for larger estates, but individuals with small estates can engage in estate planning strategies to keep certain assets out of probate. For example, payable-on-death beneficiaries can be established for bank accounts. Transfer-on-death beneficiaries can be arranged for financial portfolios. Joint tenants with rights of survivorship can be setup for real estate, while joint titles can be established for motor vehicles.
Beneficiaries cannot access financial accounts until they provide required documents to the institution where funds are held. Account holders can establish as many beneficiaries and designate percentages of funds each heir will receive.
Unfortunately, people often procrastinate about putting final affairs in order. However, when a person dies without a Will it places a heavy burden on the family. Estate planning isn't difficult or costly, but can provide peace of mind knowing the heir apparent will receive intended property.
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