What Happens to an Estate Plan if a Beneficiary Dies in New York?

What Happens to an Estate Plan if a Beneficiary Dies in New York?

In the unfortunate situation where a beneficiary passes away, it is important to know that you have options. The state of New York has already recognized this scenario and has put a statute in place to resolve these issues. Continue reading to learn more and reach out to our firm today to retain the services of a dedicated New York estate planning attorney.

What is a beneficiary in New York?

When an estate plan is created, an individual will appoint an individual to become the beneficiary of their will or trust. This means that the beneficiary is the one that receives the inheritance upon the passing of the individual that selected them. It is important to understand the role that beneficiaries play in the creation of an estate plan. In most cases, beneficiaries are the reason why an individual creates an estate plan at all.

To learn more about the role of a beneficiary, reach out to our firm today and speak with one of our skilled New York estate planning attorneys to discuss this further.

What is the anti-lapse statute?

For many years, there have been concerns regarding inheritances to deceased individuals. In the past, a gift would be deemed as not being able to be given to a deceased individual. However, now, New York State law has recognized this issue and has, in turn, passed the “anti-lapse” statute. This law was designed to balance the wishes of the testator or grantor with the responsibility to pass on assets equitably.

To explain further, under New York law, if the beneficiary passes away while the testator is alive, then the inheritance will then go to the deceased’s “issue,” which attributes to the children or grandchildren of that person.

It is important to understand that there is an important element to this anti-lapse rule that must be recognized. The New York law only refers to the testator’s own issue or their siblings. This suggests that if a gift is made to the testator’s friend, and the friend is not alive at the time, then the friend’s own children are not allowed to rely on the benefits of the anti-lapse statute.

Our firm recognizes that the elements of this statute are complex, which is why if you have any questions or concerns about what will happen to a trust or will if a beneficiary dies, do not hesitate to reach out to our experienced attorneys today at the Law Office of Andres D. Gil, PLLC today. With the help of a skilled attorney on your side, you can ensure that you and your loved ones’ futures will be prioritized.

Contact our Firm

If you or a loved one needs assistance creating an estate plan and wish to speak with an experienced attorney, contact the Law Office of Andres D. Gil, PLLC today.

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