Have you ever wondered what the difference is between beneficiaries and heirs-at-law? It is common to believe the two terms refer to the same thing. Nothing could be further from the truth. In the inheritance process there is a clear distinction between beneficiaries v. heirs-at-law. At times the two may be the same, but often this is not the case. Let’s look closer at the difference.
Beneficiaries
When you create a Last Will and Testament, you name beneficiaries. Beneficiaries are the people that you choose to inherit your property. You dictate how much of your estate each person receives. It is also possible to condition the gift on criteria you choose.
Anyone can be named as your beneficiary. You can leave something to your children, your live-in partner, your step-child or even your hair stylist. The executor must honor your wishes and award your property to the beneficiary you have named.
Heirs-at-Law
If you do not have a valid Last Will and Testament, then your heirs-at-law will receive your assets. Your heirs-at-law are dictated by state law. The Arkansas Statute can be found at A.C.A. § 28-9-203. This means the state chooses who has the right to your property at your death. If you own property in more than one state, each state will determine who will receive the asset you own inside that state’s boarders. When state law dictates who inherits your property, it may result in distant relatives you don’t even know receiving your property.
Whether beneficiaries v. heirs-at-law inherit your assets will depend upon whether you have a valid Last Will and Testament. If you want to dictate who your beneficiaries are, instead of letting the state law decide, it is urgent to create a solid estate plan.
For additional information, please sign up for one of our FREE estate planning webinars. If you have questions about beneficiaries v. heirs-at-law in Arkansas, contact the experienced Northwest Arkansas estate planning attorneys at Wilcox Attorneys, PA. Call 479-443-0062 to schedule your appointment today.
We take time to understand your goals and explain your options in plain English. Whether you need a comprehensive estate plan or guidance for your business, we make the process clear and stress-free. You tell us what you want; we create a plan that protects your wishes and your assets.
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