The Value Of A Beneficiary Contingency Plan
Your beneficiaries could pass away before you. And, if this happens, the assets within your estate plan might not go to the people you want. This may not be ideal, depending on what you wanted to give them.
By going over the value of a beneficiary contingency plan, and speaking with a Florida estate planning lawyer, you can make it easier for your beneficiaries to receive the assets you wish to give them.
What Happens If Your Beneficiaries Pass Away Before They Can Receive Your Assets?
If your beneficiaries pass away before they can receive your assets, a few things might happen:
- Your assets might be distributed according to Florida’s intestacy laws.
- Your assets might go to your residuary beneficiaries.
- Your assets might be given to the contingent beneficiary named in your will.
Here are a few points, regarding the above:
- In most cases, your assets will go to your spouse, as per Florida’s intestacy laws – this isn’t always the case, though, depending on your familial situation.
- Residuary beneficiaries are beneficiaries that receive everything else, after all of the named assets have been distributed.
- You can name a contingent beneficiary that is set to receive specific assets, in the event that the main beneficiary passes away before they receive your assets.
The first two points can make it more difficult for your beneficiaries to receive what you wish to give them.
What Is A Beneficiary Contingency Plan?
A beneficiary contingency plan is a plan that designates a contingent beneficiary, in the event that the primary beneficiary is unable to receive their designated assets.
Just as an example, if you would like to give a car to your daughter, but your daughter passes away before she can receive this car, your son could be named as a contingent beneficiary. And, if your son is named as a contingent beneficiary, he will receive this car when your will goes through probate.
If you do not have a beneficiary contingency plan, and one of your beneficiaries passes away before they can receive their assets, you may not be able to ensure that these assets go to the right beneficiary.
What Is The Value Of A Beneficiary Contingency Plan?
The value of a beneficiary contingency plan is generally rooted in the following:
- If a beneficiary passes away, your assets can still go to a beneficiary of your choosing.
- If your chosen beneficiary does not receive their designated assets, they may go to someone you don’t like.
- If a beneficiary declines their inheritance, those assets can still go to the right person.
Both of these points can make it easier for you to give your beneficiaries the right assets and for your beneficiaries to receive the assets that you would like to give them.
Speak With A Florida Estate Planning Lawyer Today
If you would like to develop an estate plan that satisfies your wishes, you may want to work with a legal professional. Speak with a Florida estate planning lawyer at the Millhorn Elder Law Planning Group today and we will help you develop your estate plan.
Sources:
law.cornell.edu/wex/beneficiary
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0732/Sections/0732.102.html
