The Importance Of Back-Up Beneficiaries

The primary beneficiaries named in your will  – and your trust – could pass away before they are able to receive what you are able to give them. This is unpleasant to think about, but there is a chance it could happen.

Going over the importance of back-up beneficiaries, and speaking with an estate planning lawyer will help you develop the estate plan you need.

What Are Back-Up Beneficiaries? 

Just imagine the following: your will includes your three children, as well as one nephew and one niece. These are your beneficiaries. But, right after you pass away, your nephew passes away.

Your nephew is in the will. But, since they are no longer alive, they can no longer receive the assets you wish to give them. And, since you passed away right around the time of their passing, you cannot make any changes to your will.

If you established a trust, then this portion of the trust will go into probate. Your beneficiaries may have a hard time getting the assets you set aside for them, due to that portion of your trust being forced to go through probate.

To ensure that the above does not happen, you can select a few back-up beneficiaries. Back-up beneficiaries are beneficiaries that will replace your primary beneficiaries, in the event that one of those beneficiaries passes away.

Just as an example, you can have the assets meant for your daughter go to your granddaughter, in the event that your daughter passes away before she can receive what you wish to give her.

How Can You Establish Back-Up Beneficiaries? 

You can establish back-up beneficiaries by thinking about who you would like to give certain assets to, on the off-chance that their intended recipient is unable to acquire them.

A good example of the above is as follows: if you want to give your son a car, and he has a son of his own who is able to drive, you can select his son to be your back–up beneficiary.

In the event that your son passes away before you can give him this car, his son will receive the car that was intended for the car.

To implement these changes, you must work with a lawyer who can help. Adjusting a trust is not easy and, if you do it wrong, the court may not be able to honor the wishes you have established.

Outside of the above, if you have yet to develop a trust of any sort, you should also work with a lawyer. Your lawyer will help you set up a trust that satisfies every single one of your goals, while also bypassing the probate process. 

Speak With A Florida Estate Planning Lawyer Today 

If you would like to develop an estate plan that satisfies your goals, you need to work with someone who can help you. Speak with a Florida estate planning lawyer at Millhorn Elder Law Planning Group today so that we can help you develop the best possible estate plan.

Sources: 

law.cornell.edu/wex/will

law.cornell.edu/wex/beneficiary