What is a lapsed beneficiary?

A lapsed beneficiary is an individual who is listed as a beneficiary in a will, trust, or other legal document, but either fails to claim their inheritance or is deceased when it is distributed. In the state of Minnesota, if a lapsed beneficiary has not claimed their inheritance within two years after they are initially listed, any funds designated to them will be considered abandoned and will be distributed to the remaining beneficiaries. In order for a lapsed beneficiary to qualify for the inheritance, they must prove they are legally entitled to it and must meet certain criteria established by the court. In the case of a deceased lapsed beneficiary, Minnesota law dictates that the heirs of the beneficiary can still receive their inheritance. The beneficiaries must have died before the two-year expiration date and the court must determine if they are legally the heirs of the lapsed beneficiary, as determined by the intestacy laws of the state. It is important to keep in mind that laws regarding lapsed beneficiaries are subject to change from state to state. Therefore, if you are a beneficiary listed in a legal document, it is important to take action and claim your inheritance within the allotted time to ensure you do not miss out.

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