Estate planning can be a great way to keep your legacy intact and provide for your loved ones after you’re gone. But life sometimes throws curveballs that complicate even the most carefully laid plans.
Things can go awry if a beneficiary you named in your estate documents passes away before you do. This can leave you worried about the fate of assets you intended for that person. Understanding how Illinois law addresses these cases can help you move forward with your estate plan and ensure your wishes come to fruition.
What happens to different types of assets
The outcome when a beneficiary predeceases you depends on the type of asset and how you’ve structured your estate plan. Here’s what you should know about common assets:
- Wills: Illinois has an anti-lapse statute that may redirect your bequest to the deceased beneficiary’s descendants if they were your grandparent, descendant of your grandparent or your stepchild.
- Trusts: Your trust document may outline the next steps if a beneficiary dies, often naming alternate beneficiaries or providing instructions for redistributing the assets.
Understanding these rules can help you anticipate problems and plan accordingly. Each situation is unique, so consulting with an attorney can give you some clarity to tackle your unique circumstances.
Steps to take if a beneficiary has predeceased you
If you discover that one of your beneficiaries has passed away, taking prompt action can help make sure that your estate plan remains in line with your wishes. Consider these steps:
- Review your documents
- Update your plan
- Consider contingent beneficiaries
- Communicate with family
Taking these steps can help you maintain control over your legacy and provide peace of mind.
Regularly reviewing and updating your estate plan can help you address unexpected changes in your life or the lives of your beneficiaries. Staying proactive with your plans can protect your estate, even if circumstances change.