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2 reasons someone could inherit less than is in a will

On Behalf of | Jan 17, 2025 | Probate & Estate Administration |

Ideally, when someone’s will is read and their estate goes through probate, the beneficiaries will receive exactly what is outlined in the estate plan. One major benefit of creating an estate plan is to ensure a smooth transfer of assets to the next generation. In some cases, beneficiaries may even know what to expect beforehand.

However, beneficiaries do not always inherit the exact amount of assets listed in the estate plan. They may receive less than they anticipated or believe they deserve. Here are two common reasons why this might happen:

Debts need to be paid first

The estate executor is often required to pay outstanding debts before distributing assets to the beneficiaries. These debts can include credit card bills, property taxes, income taxes and other liabilities. Although beneficiaries are not directly responsible for paying these debts, the funds used to settle them come out of the estate. As a result, beneficiaries may receive less than what was listed in the will, especially if the estate plan didn’t account for significant remaining debts.

The plan is out of date

Another common issue arises when an estate plan is outdated. For example, the will may have been written 10 years ago, but since then, the person may have faced significant health challenges and incurred substantial medical expenses. If they didn’t update their estate plan, the assets originally intended for their beneficiaries may no longer exist. Despite being listed in the will, these assets cannot be transferred if they are no longer part of the estate.

Navigating the probate process

The probate process can be complex and confusing, especially when dealing with intricate financial details. It’s crucial for those involved to understand the legal steps they need to take to navigate the process effectively.