What is a lapsed beneficiary?

A lapsed beneficiary is a person listed in a will or trust document as a beneficiary who cannot receive an inheritance due to their death before the will or trust can be administered, or due to a failure to meet certain conditions. In California, a lapsed beneficiary is replaced by the closest living relatives of the deceased, according to the intestate succession laws. In cases where the lapsed beneficiary was a spouse, the spouse’s surviving children are typically given the inheritance in equal shares. If the deceased beneficiary does not have any children, the inheritance is passed along to his/her parents. If the deceased beneficiary does not have parents, the inheritance is divided equally among his/her siblings or their children if any of the siblings have passed away. If the deceased beneficiary does not have any surviving relatives, the inheritance is typically passed along to the State of California. Before probate courts can distribute assets to the state, they must make attempts to locate any living relatives of the deceased beneficiary. It is important to note that California has very specific laws in regards to intestate succession which dictate how the inheritance of a lapsed beneficiary is to be handled.

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