What is a lapsed beneficiary?

A lapsed beneficiary is a person named in a will or trust document to receive a bequest or benefit who has died before the individual who wrote the will or trust document has passed away. In South Carolina, when a beneficiary of a will passes away before the original testator (the person who wrote the will), the gift or bequest intended for the deceased beneficiary is treated as if it does not exist. This is known as a lapsed gift or bequest. Generally, South Carolina law provides for the gift or bequest to go to the other beneficiaries, in proportion to their original shares, unless the testator specified a different disposition. The gift or bequest may also pass to the deceased beneficiary’s heirs or descendants if the will notes that the deceased beneficiary was to receive the bequest in trust. Ultimately, the determination of the disposition of the lapsed gift or bequest is determined by the language of the will or trust document.

Related FAQs

What is a probate bond?
Who pays for the cost of probate?
What are the duties of an executor?
What happens if an estate cannot pay its debts?
What are probate fees?
What is a grant of probate?
What is a living trust?
Who is entitled to the contents of a safe deposit box?
What is a trust protector?
What are the requirements to be an executor?

What is a lapsed beneficiary?

Related FAQs

Related Blog Posts