What is a lapsed beneficiary?

A lapsed beneficiary is a person named in a will who is unable to receive their inheritance because the estate has been closed and the assets distributed. This can occur in New York if the beneficiary was not notified that the estate was being probated and was not present to receive their portion of the estate. In some cases, the estate might be over before the beneficiary was able to make any claims. In order for a beneficiary to receive their inheritance, the executor of the estate must complete various tasks. Generally, the executor must identify all of the property, pay all of the debts and taxes, and then distribute the remaining assets. If any of these steps are not completed, the beneficiary may not receive their share of the estate. When beneficiaries are not informed of the probate proceedings or are absent from probate court, they may be considered lapsed beneficiaries. In New York, lapsed beneficiaries have three years from the end of probate to make a claim against the estate. If the three year period passes and no claim is made, then the estate is considered closed and the inheritance is forfeited.

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