Legal Advocacy For All Stages of Your Life

When life takes an unexpected turn: Navigating predeceased beneficiaries

On Behalf of | Oct 31, 2024 | Estate Planning

Life can take tragic and unexpected turns. The loss of a loved one is always difficult, but it can become even more complicated when it affects your estate plan.

This scenario, involving what’s called a predeceased beneficiary, can significantly impact an estates distribution. We can help you understand Michigan’s rules and plan effectively.

What happens if your beneficiary dies first?

Michigan’s anti-lapse statute can come into play when a beneficiary dies before the will-maker. This law aims to protect certain gifts from failing. Here’s what you should know:

  • Covered family members: The statute applies to gifts for descendants of your grandparents.
  • Gift protection: It stops the gift from lapsing by redirecting it to the deceased beneficiary’s descendants.
  • Important exceptions: The law doesn’t apply if your will says otherwise or for some residuary beneficiaries.

These points can help you anticipate potential outcomes for your estate plan. But remember, the anti-lapse statute doesn’t cover every situation.

When the anti-lapse law doesn’t step in

If the anti-lapse statute doesn’t apply, the gift typically lapses. This could mean:

  • The gift might become part of the residuary estate
  • Without a residuary clause, it could pass through intestacy laws
  • Other named beneficiaries might receive the gift, depending on your will’s wording

To avoid surprises, you might want to name alternate beneficiaries in your will. This strategy can give you more control over your estate distribution.

With these points in mind, it is important that you communicate your wishes clearly in your will. A well-crafted estate plan can help prevent confusion and ensure that courts respect your desires.

Archives