When closing an estate, each case is different. Some Texas residents may need to handle a considerable number of assets for a deceased individual, and others may see relatively short and simple probate proceedings. Of course, issues could arise at any time during the process that may cause some confusion for executors.
One issue that could easily leave executors scratching their heads is what to do if a beneficiary passes away before obtaining his or her inheritance. In some instances, what happens to that inheritance can depend on whether the deceased beneficiary had created an estate plan. If he or she did, the inheritance may pass directly to the estate and be distributed in accordance with the beneficiary’s estate plan. If not, the assets will likely pass on according to state intestate succession laws.
The situation can be different if a beneficiary of a trust dies during the administration of the trust. Some grantors may have accounted for this possibility when creating the trust, and as a result, the trust may have stipulations for what should happen to the assets in the event of a beneficiary’s death. In this case, the trustee would simply follow the instructions of the trust.
Of course, handling probate matters in any capacity can be difficult. If a beneficiary passes away before the process is complete, Texas executors may hesitate when it comes to taking action with the intended assets. Fortunately, parties in this position can reach out to knowledgeable attorneys who can guide them through the process of correctly distributing assets under such circumstances.