Heirs Vs. Beneficiaries: What Is The Difference?
People often use the terms ‘beneficiary’ and ‘heirs’ interchangeably. While the two terms both refer to loved ones and people in your close circle, there are differences between the two. When drafting your estate plan, it is important to know what these differences are. If you do not, it can result in unnecessary confusion and complications among your loved ones. Our Daytona Beach estate planning lawyer explains the differences below.
Understanding Heirs in an Estate Plan
Your surviving spouse and your blood relatives are classified as your heirs. Under the intestacy laws in Florida, your heirs may have a right to your property if you pass away, including your bank account and personal assets. The term ‘heirs’ is used most commonly when someone has passed away without a Will or estate plan. In these instances, the personal representative of the estate may have to research who the heirs of the deceased are, so they know who is legally entitled to the property in the deceased’s estate.
It is important to know that heirs may also be beneficiaries. However, this is not automatic and does not always happen.
Understanding Beneficiaries in an Estate Plan
While heirs are related to you, either through blood or marriage, this is not always true for beneficiaries. Your beneficiaries are the people you have specifically selected to receive shares of your property. You can do this with a will or with other parts of an estate plan, such as a trust. You have the right to select anyone you choose as a beneficiary, so they do not necessarily have to be a family member. You can choose close friends, relatives, or even a charitable organization.
Do Beneficiaries or Heirs Take Precedence?
After understanding the difference between beneficiaries and heirs, many people wonder who takes precedence after they pass away. If you have outlined your wishes in a legal document such as a will, these preferences generally take precedence over the intestate laws in Florida.
For example, if you do not have a spouse or children, you may wish to leave all of your property to a charitable organization. Even if other family members, such as your parents, survive your passing, they will not receive anything because you have made your wishes clear.
The Exception for Spouses
Under state law, spouses do have automatic rights to a portion of your estate, even if you have disinherited them. Under the elective share law, your spouse can receive as much as 30 percent of your estate after you pass away. They also likely have the right to to remain in the marital home. If you do not have children, your spouse may also be entitled to your entire estate.
Call Our Estate Planning Lawyer in Daytona Beach Today
There are many terms you will come across when estate planning and it is important to know what they all mean. At Bundza & Rodriguez, our Daytona beach estate planning lawyer can fully explain these terms and their definitions so you can make informed choices that reflect your best interests. Call us now at 386-252-5170 or contact us online to schedule a consultation and to get the legal help you need.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0732/0732.html
