This article explains the concept of an heir and clarifies how the appointment of an heir works, the differences between heirs and beneficiaries, and the types of heirs.
How Heir Appointment Works
An heir is a person who is eligible to receive assets upon the death of a relative. Typically, heirs are the relatives of the deceased person who inherit their property upon their death. Heirs can include spouses, children, and grandchildren.
If there are no traditional heirs, assets may potentially be transferred to what is known as “collateral heirs” of the deceased person, such as siblings and close blood relatives like sons and daughters.
When someone dies, all potential heirs are notified, but this does not necessarily mean they are entitled to the assets. If the deceased had a will, the executor of the will is responsible for distributing those assets. After identifying all potential heirs and notifying them, the probate court decides who will receive the specified assets.
Note: Direct descendants such as children are sometimes referred to as lineal heirs in official documents.
When someone dies without a will, the probate court is usually responsible for determining who the heirs to the estate are. The specific rules for asset distribution and estate settlement—also known as “intestate succession”—vary from state to state.
To determine the heirs, some states require the probate court to conduct a search for relatives or place an announcement in the local newspaper. If it turns out that the deceased has no heirs, the property and assets are transferred to the state where the probate is being conducted.
In cases where the estate is not handled by the probate court and property has passed down through generations, grandchildren sometimes share in the estate, referred to as “heir property.” Heir property is said to have “clouded title,” meaning it cannot be sold, mortgaged, or even improved until clear title is established or a decision is made regarding who is entitled to the property.
When someone dies without a will, heirs can file a request to administer the estate or distribute assets to eligible individuals. In New Jersey, for example, potential administrators are determined based on their relationship to the deceased, in the following order: spouse or domestic partner, adult children, guardian of minor children, parents of the deceased, siblings, grandparents, aunts and uncles, and children of the former spouse.
Note: Inheritance is taxable in many states, and the rates vary depending on the heir’s relationship to the deceased. For example, in Pennsylvania, the tax rate is 4.5% for direct descendants, 12% for siblings, and 15% for other heirs. Conversely, some states impose inheritance or estate taxes.
Example of an Heir
An example of heirs can be seen in the succession of the British royal family tree. The line of succession passes from Queen Elizabeth II and Philip, Duke of Edinburgh, to 24 individuals, starting with their son Charles, Prince of Wales, and then William, Duke of Cambridge. Although the line of succession in this case is governed by parliamentary law as well as lineage, it is still a valid example to understand how someone can be an heir.
Heirs vs. Beneficiaries
While heirs are usually the blood relatives of the deceased who have the right to inherit, beneficiaries, in general, are those who inherit based on a will. Beneficiaries can be individuals or even entities such as charities.
Not all heirs are necessarily beneficiaries, as in the case of intentionally leaving an adult child out of the will, even though all potential heirs are usually identified and notified upon the descendant’s death.
Types of Heirs
Heirs are any individuals qualified under intestate succession laws to receive the property and assets of the deceased. In addition to the surviving spouse, there are several other individuals who can be specified heirs of the estate. Below, find the most commonly used terms to describe the type of heir that can be:
- Heir
- Direct or linear heir: The person who is in a direct line with the deceased, such as children, grandchildren, parents, and grandparents.
- Collateral heir: The person who is not directly related, but is connected through a collateral line. This can include siblings, aunts, uncles, and others.
- Forced heir: The person who is under 24 years old and permanently unable to care for themselves due to a physical or mental disability.
Minor children can also be heirs, including adopted children, although a court usually appoints a guardian to manage their assets until they reach adulthood. It is important to note that many probate courts recognize heir children as only biological or adopted children. For example, stepchildren and children from a previous marriage do not have a legal right to inherit.
Main Conclusions
An heir is a person qualified to receive assets and property upon the death of the descendant. Heirs differ from beneficiaries, who are the individuals or entities named in a will to receive property upon the death of the estate owner. The probate court determines who can legally inherit the assets and property. If the property is not handled by a probate court, heirs may share in the property, meaning that the property does not have a clear title to be sold.
Sources:
– Santa Fe County Probate Judge’s Office
– Legal Information Institute at Cornell Law School
– Deloche Hofstra & Kafonis, PA
– Legal Information Institute at Cornell Law School
– Wiley Trust
– North Carolina State University
– Union County, New Jersey
– Beaver County, Pennsylvania
– Royal Family
– IRS
– Courts in California
– Sekurian Financial
– Maryland Probate Registration Office
– State of Louisiana
– Cornell Journal of Law and Public Policy
Source: https://www.thebalancemoney.com/what-is-an-heir-5208173
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