Some people use the terms ‘heir’ and ‘beneficiary’ interchangeably. However, the two terms actually mean different things. Not all heirs are beneficiaries, and not all beneficiaries are heirs.
What is a Beneficiary?
If you die with an estate plan, you should have named beneficiaries – those who will receive your assets after you die. You might name your children, cousins, or other relatives as beneficiaries. You could also name a close friend or even a charity as a beneficiary. Beneficiaries can be named in a Will, Trust, on individual financial accounts, on insurance policies, etc.. When you name beneficiaries, the named individuals receive the assets even if they are not heirs.
What is an Heir?
An heir is a family member, sometimes distant, determined by law. If you die intestate – without a will, Georgia law dictates who receives your assets based on who your heirs are. Georgia’s intestate succession laws can become complex depending on the makeup of the family. Note: half-siblngs are included as heirs. The following is not an all-inclusive list and simplified but covers the most common instance:
If you are married at the time of your death:
- And have no children or descendants living, your spouse receives your entire estate.
- And have living children or deceased children survived by descendants, your spouse shares the estate with your children and the descendants of deceased children. However, the spouse never gets less than a third of the estate.
If you are unmarried at the time of your death:
- Your children and the descendants of deceased children are your heirs and share the estate.
- If you are not survived by any descendants. your parents share equally.
- If you have no descendants and your parents are no longer alive, your siblings and the descendants of deceased siblings share the estate.
The progression continues with the estate being split at the closest level.
Dying intestate means that the laws in Georgia determine who receives your estate. Contact our Grissom Law at 678.781.9230 today for a consultation and to start an estate plan, so your assets go to who you want to have them.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney-client relationship between you and Grissom Law, LLC.