Heir apparent is a term used in estate planning to describe direct lineage relatives of a person who is deceased.
Heirs are designated within the last will and testament.
Upon death, each heir apparent receives property gifted to them through the Will.
If there is no Will, each heir apparent will receive inheritance property according to state probate laws.
The most common heirs include the surviving spouse, children, grandchildren, siblings, and parents.
Aunts, uncles, and cousins can also fall into the category of heir apparent.
Most people have living relatives, but when decedents do not have direct lineage relatives and do not execute a Will, inheritance assets can be transferred to the state where the decedent resided.
Estate property is held in escheat which provides heirs time to claim the property.
Once the escheat dormancy period expires, estate property can be placed for sale through public auctions.
Individuals can disinherit heirs by including a disinheritance clause in their last will and testament.
The clause should include specific reasons for disinheriting heirs.
Otherwise, heir apparents can contest the Will, claiming the decedent was not of sound mind or under the influence of another person when executing the Will.
The last will and testament is a crucial part of probate and trusts.
When estates assets are not transferred to a trust, the estate must undergo the probate process.
Probate is required within the U.
S.
to settle estate matters and ensure heirs receive inheritance property bequeathed to them within the Will or according to state probate laws.
The average duration of probate is 6 months or longer.
Trusts do not have to undergo probate and inheritance property can be distributed fairly quickly.
The last will is transferred to the trust and provides directives for distribution of assets.
Trusts are generally used when estate assets are valued over $100,000.
The last will is kept private when trusts are arranged, whereas the Will becomes a matter of public record with probated estates.
Individuals can utilize estate planning strategies to protect certain assets from undergoing probate.
These can include: financial portfolios, retirement accounts, life insurance policies, bank accounts, and titled property including automobiles and real estate holdings.
Account holders are allowed to establish payable-on-death (POD) or transfer-on death (TOD) beneficiaries to financial accounts.
POD beneficiaries are assigned to checking and savings accounts, while TOD beneficiaries are assigned to investment accounts.
TOD beneficiaries can choose to transfer funds to a new account or cash-out the accounts.
Beneficiaries do not have access to financial accounts while the account holder is still alive.
Upon death, estate executors obtain date-of-death values from the financial institution.
Forms are sent to the county tax assessor to verify decedents do not owe taxes.
If tax payments are current, date-of-death forms are returned and funds are distributed.
When taxes are owed, the estate must remit full payment before inheritance money can be distributed.
The last will and testament allows decedents to specify inheritance gifts for each heir apparent.
Gifts are classified as either specific or general.
Specific gifts encompass valuables such as family heirlooms or antiques, while general gifts include personal belongings such as clothing, china, and household furnishings.
Everyone of legal age should execute a last will and testament.
Probate lawyers can draft a basic will for under $100.
A good source for locating probate attorneys and learning about estate planning is the American Bar Association website at abanet.
com.
Heirs are designated within the last will and testament.
Upon death, each heir apparent receives property gifted to them through the Will.
If there is no Will, each heir apparent will receive inheritance property according to state probate laws.
The most common heirs include the surviving spouse, children, grandchildren, siblings, and parents.
Aunts, uncles, and cousins can also fall into the category of heir apparent.
Most people have living relatives, but when decedents do not have direct lineage relatives and do not execute a Will, inheritance assets can be transferred to the state where the decedent resided.
Estate property is held in escheat which provides heirs time to claim the property.
Once the escheat dormancy period expires, estate property can be placed for sale through public auctions.
Individuals can disinherit heirs by including a disinheritance clause in their last will and testament.
The clause should include specific reasons for disinheriting heirs.
Otherwise, heir apparents can contest the Will, claiming the decedent was not of sound mind or under the influence of another person when executing the Will.
The last will and testament is a crucial part of probate and trusts.
When estates assets are not transferred to a trust, the estate must undergo the probate process.
Probate is required within the U.
S.
to settle estate matters and ensure heirs receive inheritance property bequeathed to them within the Will or according to state probate laws.
The average duration of probate is 6 months or longer.
Trusts do not have to undergo probate and inheritance property can be distributed fairly quickly.
The last will is transferred to the trust and provides directives for distribution of assets.
Trusts are generally used when estate assets are valued over $100,000.
The last will is kept private when trusts are arranged, whereas the Will becomes a matter of public record with probated estates.
Individuals can utilize estate planning strategies to protect certain assets from undergoing probate.
These can include: financial portfolios, retirement accounts, life insurance policies, bank accounts, and titled property including automobiles and real estate holdings.
Account holders are allowed to establish payable-on-death (POD) or transfer-on death (TOD) beneficiaries to financial accounts.
POD beneficiaries are assigned to checking and savings accounts, while TOD beneficiaries are assigned to investment accounts.
TOD beneficiaries can choose to transfer funds to a new account or cash-out the accounts.
Beneficiaries do not have access to financial accounts while the account holder is still alive.
Upon death, estate executors obtain date-of-death values from the financial institution.
Forms are sent to the county tax assessor to verify decedents do not owe taxes.
If tax payments are current, date-of-death forms are returned and funds are distributed.
When taxes are owed, the estate must remit full payment before inheritance money can be distributed.
The last will and testament allows decedents to specify inheritance gifts for each heir apparent.
Gifts are classified as either specific or general.
Specific gifts encompass valuables such as family heirlooms or antiques, while general gifts include personal belongings such as clothing, china, and household furnishings.
Everyone of legal age should execute a last will and testament.
Probate lawyers can draft a basic will for under $100.
A good source for locating probate attorneys and learning about estate planning is the American Bar Association website at abanet.
com.