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someone who inherits is called

someone who inherits is called

someone who inherits is called

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someone who inherits is called
someone who inherits is called

 

Legatee, Heir, Beneficiary and Devisee: What Are the Differences?

A quick guide to the language of inheritance to help you make sense of who’s who in an estate plan.

by Michelle Kaminsky, Esq.
updated February 22, 2021 ·  3min read

The law has several different terms for people who inherit property from a deceased person’s estate, among which are “legatee,” “heir,” “beneficiary,” and “devisee.” To make matters even more complicated, the use of these terms vary by state. Whether you’re making an estate plan or find yourself the beneficiary of one, understanding a few of the more frequently used inheritance terms can be very useful.

What Is a Beneficiary?

“Beneficiary” is a generic term for someone named in a will or trust to receive property. In a trust, a beneficiary may either have a present or future interest.

Beneficiary is often used as an overarching term that covers some more specific designations.

What Is a Legatee?

The historical definition of “legatee” is someone who receives personal property (as opposed to real property) from an estate, but it has come to more commonly refer to a person who inherits under a will but may not be related to the decedent (i.e. the person who has died).

The most common example would be a friend inheriting under someone’s will, but a legatee may also be a charity, business, or other organization.

What Is a Devisee?

someone who inherits is called
someone who inherits is called

Historically speaking, a “devisee” is someone who receives real property (as opposed to personal property) from an estate.

In modern times, though, a devisee usually refers to anyone who receives property by being named in a decedent’s will whether they are related or not—like a friend, as described above.

What Is the Difference Between a Legatee and a Devisee?

Applying the archaic legal definitions, the difference between a legatee and a devisee is the kind of property they inherit. A legatee inherits personal property (jewelry, vehicles, cash, etc.) while a devisee inherits real property, such as the family home.

Under current laws, though, the main difference between a legatee and a devisee is simply the governing state law. That is, while some states use the term “legatee” to refer to someone who inherits under a will but is not related to the decedent, other states may use “devisee,” but the terms are, in essence, interchangeable.

Is a Legatee a Beneficiary?

The definition of a beneficiary is quite broad, which means it includes both legatees and devisees.

Who Is a “Universal Legatee?”

A “universal legatee” is a term used only in Louisiana, the only state to apply civil law, while the rest of the country applies common law. Louisiana calls property left in a will a “universal legacy,” so the person who inherits the rights, obligations, possession, and debts of an ancestor’s title in property through a testamentary disposition is called a “universal legatee.”

What Is an Heir?

“Heir” generally refers to blood relatives—children, parents, siblings, nieces and nephews, grandparents, uncles and cousins—as well as the decedent’s surviving spouse and adopted children. Heirs are usually limited to those related by blood, adoption, or marriage.

The concept of heirs most often arises when someone dies intestate (without a will). In this instance, state intestacy laws govern the distribution of the decedent’s property, following a line of intestate succession. State laws vary, but, in most jurisdictions, spouses and children inherit first. If a decedent had no spouse or children, usually parents inherit next, and so forth down the line of relatives.

And, again, because the definition of beneficiary covers a lot of ground, an heir would be considered a beneficiary as well.

As always with laws governing wills, trusts, and estates, you should check your own state’s statutes to be sure which rules and terms apply in your jurisdiction.

heir Add to list 

If your grandfather leaves his candy factory to you in his will, it means you’re the heir to the family candy business, and after your grandfather dies, you will inherit the factory.

When you’re named in a will or are legally entitled to inherit something, you’re an heir. You can be the heir to someone’s money, business, or title; in a monarchy, the king or queen’s oldest son is usually the heir to the throne. The word heir isn’t pronounced like “hair,” but instead has a silent h and sounds like “air.”

someone who inherits is called
someone who inherits is called

How to deal with the property of a person who has died

Everything owned by a person who has died is known as their estate. The estate may be made up of:

  • money, both cash and money in a bank or building society account. This could include money paid out on a life insurance policy
  • money owed to the person who has died
  • shares
  • property, for example, their home
  • personal possessions, for example, their car or jewellery.

If the person who died owes money to other people, for example, on a credit card, for fuel, for rent or a mortgage, this comes out of the estate.

The estate of the person who has died is usually passed to surviving relatives and friends, either according to instructions in the will, or if the person dies without leaving a will, according to certain legal rules called the rules of intestacy.

What does the executor or administrator do

The executor or administrator (also called the personal representative) takes responsibility for dealing with all of the estate. This involves:

  • finding all the financial documentation belonging to the person who died
  • sending a copy of the death certificate to the organisations that hold the money of the person who has died. Ask them for confirmation of the value of the money held at the date of death and the amount of income received during the last tax year up to the date of death. Also ask them to freeze the bank accounts so no one can take money out without the correct legal authority
  • opening a bank account on behalf of the estate
  • finding out details of money owed to the estate
  • finding out details of money owed by the person who has died
  • preparing a detailed list of the property, money and possessions and debts in the estate

Tax and benefits

When someone dies, it’s important to sort out their benefits, tax and National Insurance as soon as possible. There may be tax to pay, or their estate might be owed some tax back.

You need to tell the tax office, and each government office that was paying benefits to the person who has died, about their death. You need to do this as soon as possible after the death.

Depending where the person who has died was living, you may be able to tell several government services about the death in one contact by using the Tell Us Once Service. For more information about this service, see What to do after a death.

Debts

someone who inherits is called
someone who inherits is called

The person who has died may have left debts, for example, an overdraft on their account or a credit agreement that has not been paid off.

When someone dies you should try to contact all their creditors. You should place a notice in The Gazette on their website, the official public record of legal notices in the UK. This will tell creditors they can make a claim against the estate to pay off the debt. If you don’t place a notice and creditors come forward after you’ve paid out the estate, you might have to pay off the rest of the debt with your own money.

In general, if there is not enough money in the estate of the person who has died to pay their debts their creditors cannot recover the amount still owed from anyone else, including that person’s surviving relatives. You should check whether that person had any kind of insurance policy that would pay off any of their debts on their death, for example, a payment protection insurance policy taken out at the same time as a loan.

Probate and letters of administration

Probate

If you are named in someone’s will as an executor, you may have to apply for probate. This is a legal document which gives you the authority to share out the estate of the person who has died according to the instructions in the will. You do not always need probate to be able to deal with the estate.

If you have been named in a will as an executor, you don’t have to act if you don’t want to.

Letters of administration

In some circumstances, someone who wants to deal with the estate of someone who has died will have to apply for letters of administration, rather than probate. This person is called an administrator. You have to apply for letters of administration if:

  • there is no will
  • a will is not valid
  • there are no executors named in the will
  • the executors cannot or are unwilling to act.
Jointly-owned property

Random Posts

Couples may jointly own their home. There are two different ways of jointly owning a home. These are beneficial joint tenancies and tenancies in common.

If the partners were beneficial joint tenants at the time of the death, the surviving partner will automatically inherit the other partner’s share of the property. There is no need for probate or letters of administration unless there are other assets that are not jointly owned. The property might have a mortgage.

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