What is the difference between a beneficiary and an heir?

A beneficiary and an heir are both people or entities that benefit from a deceased person’s estate, but there is a distinct difference between the two. When someone passes away, their estate is subject to the rules of probate law in Indiana, which dictates who inherits the deceased’s assets and how these assets are divided up. An heir is someone who is legally entitled to a share of the deceased person’s estate. This includes intestate heirs, who are the people who the deceased has specified in his or her will, as well as statutory heirs, who may be relatives of the deceased or may include the surviving spouse. A beneficiary, on the other hand, is someone who has been specifically designated to receive some sort of gift or asset from the deceased person’s estate. Beneficiaries can include anyone that the deceased has chosen, from family members to charities or organizations, and they are often named in the deceased’s will. Beneficiaries may also be required to settle outstanding debts of the deceased or to receive their life insurance policy. In summary, an heir is someone who is legally entitled to a share of the deceased person’s estate, while a beneficiary is someone who has been specifically designated to receive a gift or asset from the deceased’s estate. Probate law in Indiana governs both of these two processes, and understanding the difference between them can help individuals understand their rights under the law.

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