What happens if someone is already dead when they are a beneficiary?

Answer 1

The answer depends upon the laws of the state in which the decent died. It also depends upon what the will says. Some will specifically state what happens in such a case and those wishes are to be followed. In absence of specific directions or in absence of a will state laws control. Different states might have different rules.

As an example, in NJ, there are several rules dealing with this issue. First, if the deceased beneficiary is a child of a grandparent common to the decedent and the beneficiary, then the gift the deceased beneficiary would have received had he/she lived goes to the issue (children and grandchildren) of the beneficiary. It does not get distributed as part of the deceased beneficiary's estate. If the beneficiary and the decedent have no common grandparent then the gift lapses and it goes back into the estate to be distributed according to the will most likely as part of the residuary estate. I trust that that is perfectly unintelligible.

Answer 2

First, let me assure you that being a beneficiary has little or nothing to do with where you will spend eternity! Seriously, I presume you question has to do with to whom are death proceeds payable in the absence of a living beneficiary. The answer, presuming no contingent beneficiary (ies) are named, is that the proceeds are usually payable to the deceased person's estate.

Answer 3

On a life insurance policy if there is ONE Primary beneficiary who receives 100% of the life proceeds at death...and they die...the contingent beneficiary or beneficiaries are next in line.

IF No one is named as a secondary or contingent beneficiary, the proceeds belong to the Estate of the Insured. Typically, family members can step forward with a death certificate and request to participate in the proceeds from the policy. The policy will go through probate.

It is wise to name additional contingent beneficiaries. IF Minors are selected be aware that a court may name a guardian for the children if they are under 18, who has a fiduciary relationship to utilize the money for the benefit of the children BUT the courts do not actively police the use. IF there is abuse of the funds, the children or other family members or another party must alert the court in most instances.

A Revocable Trust OR IRREVOCABLE TRUST can be named as beneficiary as well...and if the Trust is listed as Primary Beneficiary several contingencies can be addressed giving the Insured "Control from the Grave".

Example ... if Charles Smith is named as Beneciary in the trust the money the trust may stipulate that the $$$ may stay in the trust until Charles Smith graduates an accredited U.S. College...or it can require that the beneficiary turn a certain age or it may disinherit the individual if they marry someone in particular...etc...

This answer can become even more complicated when discussing multiple beneficiaries listed as a Primary... one must understand weather they are Tenants in Common or not.

Answer 4

That will depend on the trust. In some cases, the trust will then benefit another individual, or be distributed differently. The other possibility would be that the trust would become part of the beneficiaries estate. Consult the attorney or trustee to find out.

Answer 5

If they own property it would pass according to the provisions in their will. If they have no will it would pass to their heirs-at-law according to the state laws of intestacy. You can check the laws in your state at the related question link provided below.

Answer 6

It really depends on how the will is structured. Many wills may specify using language like "if X survives me." Assuming that the will does not specify, the money would still go to the deceased beneficiary and would pass to that beneficiary's heirs, either by that beneficiary's will or pursuant to the state intestacy statute if the beneficiary has no will.

Answer 7

The next of kin to the policy holder will get paid for the policy.