What Happens If a Beneficiary Dies Before Receiving an Inheritance?

The first thing to determine is whether the beneficiary died before or after the person who left the inheritance.

The Beneficiary Died Before the Decedent

Generally, California Probate Code section 21109 states that if a beneficiary dies before the person who left them the inheritance, that beneficiary will usually not be able to take the gift. The next step in such a situation is determined by the terms of the will or trust and by whether any other California law applies. In certain cases, the deceased beneficiary’s descendants may be allowed, under California’s anti-lapse statute, to receive the inheritance.

Under Probate Code section 21110, the descendants of certain deceased beneficiaries can take the beneficiary’s place if the beneficiary was related to the transferor or to the transferor’s current, former, or deceased spouse.

The anti-lapse rule does not override clear instructions in the will or trust; if the document names a substitute beneficiary or requires the original beneficiary to outlive a certain period, then those terms will apply.

For example, if a mother leaves property to her son and the son dies first, his children may be able to receive his share. But if the will names someone else if the son does not survive, that alternate gift generally controls.

The Beneficiary Survived the Decedent but Died Before Distribution

For a probate estate, California Probate Code section 7000 generally provides that title to property passes at the decedent’s death to the person named in the will, subject to estate administration.

This means the inheritance does not automatically disappear just because the beneficiary dies before probate is finished. If the beneficiary survived the decedent and satisfied any required survival period, the inheritance may become part of the beneficiary’s own estate.

Who ultimately receives that property then depends on the deceased beneficiary’s will or, if there is no will, California intestate succession law.

Not automatically.

When the Beneficiary Died Before the Decedent

If a beneficiary dies before the original decedent, the beneficiary’s spouse does not simply step into the beneficiary’s place. The executor or trustee must determine whether an alternate gift or California’s anti-lapse statute applies.

When the Beneficiary Died After the Decedent

If the beneficiary survives the original decedent and later dies, the beneficiary may already have acquired an interest in the inheritance. That interest can pass through the beneficiary’s own estate.

If the deceased beneficiary had no will, California Probate Code section 6401 determines what a surviving spouse may inherit from that beneficiary’s estate based on which other family members survive.

In other words, a spouse may eventually receive some or all of the deceased beneficiary’s inheritance. But the spouse would receive it through the beneficiary’s estate rather than automatically being named as the beneficiary under the original will.

What If the Will or Trust Names Another Beneficiary?

A will or trust may state that if a beneficiary dies, the share passes to the beneficiary’s children, another named person, the remaining beneficiaries, or the residue.

Probate Code section 21111 provides default rules for certain failed transfers when the instrument does not provide a complete answer. Depending on the type of gift, the property may become part of the residue, pass to the decedent’s estate, or be divided among other residuary beneficiaries.

Because the language can change the outcome, an executor or trustee should carefully review the governing document before distributing a deceased beneficiary’s share.

What If There Is No Will?

When someone dies without a valid will, California law of intestate succession determines who inherits.

California’s 120-Hour Survival Rule

The Probate Code section 6403 normally requires an heir to outlive the decedent by 120 hours (5 days); if the person fails to meet that requirement, under California law, that individual is regarded as having predeceased the decedent for purposes of intestate succession.

The spouse of a person who might otherwise have been entitled to inherit does not become an heir of the original decedent by right. Rather, it is California’s laws relating to intestate succession which decide who is entitled to inherit.

What Should You Do If a Beneficiary Has Died?

Before distributing the property, determine

Did the beneficiary die before or after the decedent?
Whether an alternate beneficiary is named.
Does the will or trust include a survival requirement?
Whether California’s anti-lapse statute applies.
Whether the inheritance became part of the deceased beneficiary’s own estate.

When family members disagree over who is entitled to a deceased beneficiary’s share, The Grossman Law Firm handles probate and trust litigation involving disputed inheritance rights throughout California.

FAQ

Does a Beneficiary’s Spouse Automatically Inherit Their Share?

No. The spouse’s rights depend on when the beneficiary died, the provisions of the governing document, and the California laws that apply.

What Happens If a Beneficiary Dies During Probate?

If the beneficiary outlives the deceased and meets any relevant survival requirement, then the beneficiary’s interest usually passes into the beneficiary’s own estate rather than going back automatically to the original estate.

Can a Deceased Beneficiary’s Children Inherit Instead?

In some cases, the beneficiary’s descendants may be able to take the share pursuant to Probate Code section 21110 if California’s anti-lapse law applies and the document does not provide otherwise.

What If the Will Requires the Beneficiary to Survive by 30 Days?

That requirement can control. If the beneficiary does not survive for the required period, the gift may pass to an alternate beneficiary or as otherwise directed by the will.

How The Grossman Law Firm Can Help

At The Grossman Law Firm, we help beneficiaries and heirs throughout California enforce their rights in probate and trust litigation.

You can call (888) 443-6590 or complete our Get Help Now form to discuss your situation with our Intake Specialists.

Our Intake Specialists can evaluate your case at no cost to you. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.

Originally Published Jan 13, 2020

What Happens If a Beneficiary Dies Before Receiving an Inheritance?

Table of Contents

Key Takeaways