A predeceased beneficiary refers to an individual named in a will, trust, or other estate planning document who dies before the person who created the document (the grantor or testator).
In estate planning, it is common to name beneficiaries to receive assets upon the grantor’s death. However, if a beneficiary dies prior to the grantor, the treatment of the predeceased beneficiary’s share of the estate can vary based on the language of the will or trust, as well as applicable state laws.
If the will or trust includes a contingent beneficiary provision, the assets intended for the predeceased beneficiary may pass to this alternate individual. For example, if a parent names their child as a beneficiary but that child dies before the parent, the assets may go to a contingent beneficiary, such as a grandchild or a sibling of the deceased child.
In Texas, if there is no provision for contingent beneficiaries and the estate plan does not specify otherwise, the share of a predeceased beneficiary may be distributed according to the state’s laws of intestacy, meaning the assets could be divided among the surviving heirs as defined by Texas law. This can lead to unintended distributions, making it essential for individuals to regularly review their estate planning documents to ensure they reflect current wishes and family circumstances.
Additionally, if a predeceased beneficiary has surviving descendants, many estate plans include per stirpes provisions, which allow the deceased beneficiary’s share to pass down to their children, ensuring that the deceased’s lineage is still recognized in the distribution of assets.
« Back to Glossary Index