What Happens If a Primary Beneficiary Dies in Michigan?

Have you ever worried about naming someone in your will who might pass away before you do? This topic can be unsettling, but it’s a real concern for anyone thinking about future planning.

Bassett Murray Law Group is invested in improving lives, and we work with neighbors across Michigan to bring peace of mind through thoughtful estate planning. Our aim today is to share how Michigan laws address the death of a primary beneficiary so that you feel ready to protect your wishes.

What Happens When a Primary Beneficiary Dies Before the Will Maker in Michigan?

When a primary beneficiary passes away before the person who created the estate plan, the planned inheritance for that beneficiary may no longer apply. You might have assigned a share of property or financial accounts to someone who is no longer living. That can leave loved ones puzzled about what goes where.

In many cases, adjusting the will or trust is the simplest fix. If you learn of the beneficiary’s passing ahead of time, changing your estate plan is strongly suggested. This step keeps your distribution clear and avoids later confusion for your family.

Michigan law provides avenues for managing this issue, but delays often occur if the estate plan is not updated. Families might need to rely on default rules if the will or trust does not specify an alternative plan.

Here are some pointers to keep in mind as you plan ahead:

• Try to stay in touch with named beneficiaries, especially older relatives whose health might change.
• Review your estate documents at routine intervals (for example, every few years).
• Consider naming backup beneficiaries to help prevent legal complications.

Scenarios When a Primary Beneficiary Passes Away First

An unexpected passing can upend your original intentions, but the specifics can vary. Below are examples of how Michigan law handles different outcomes when a beneficiary is no longer alive:

No Contingent Beneficiary Named

If there is no designated backup, the deceased beneficiary’s portion can revert to the estate. Sometimes, the remainder of the estate plan spells out how any unclaimed shares are handled. Otherwise, Michigan intestate laws may step in. Those laws set out a default plan for distributing property when there is no valid will or suitable instructions.

In that scenario, the estate’s personal representative would distribute the assets in line with the remaining terms of the will or, if needed, follow intestate statutes. That process can take time and increase frustration for survivors, so it is often wise to name an alternate beneficiary in the will or trust itself.

Per Stirpes Distribution

Under a per stirpes arrangement, if the original beneficiary has already died, that person’s offspring receives the deceased person’s share in equal portions. This method preserves your intent of passing the inheritance along your chosen line of the family. It acknowledges that the gift was meant for that “branch,” even if one beneficiary is no longer there.

Michigan law supports per stirpes distribution through MCL 700.2718. By including per stirpes language in your estate plan, you ensure any future share still stays in the same family line. This measure can prevent arguments, especially when several relatives survive a deceased beneficiary.

Contingent Beneficiary Named

A contingent beneficiary is the one waiting “second in line” to receive assets if the primary beneficiary dies before the will maker. For instance, you might specify your sister as the primary beneficiary, with your brother named as the alternate. Should your sister pass away first, your brother automatically becomes the new recipient of that share.

This route can avoid confusion by naming a particular person or group who will step in. You may also assign an organization or charity as a backup if you prefer. This practice can spare loved ones from disagreements over who should receive the inheritance.

Michigan’s Anti-Lapse Law

Michigan’s anti-lapse law (MCL 700.2603) creates an additional safeguard for certain relatives. If the beneficiary was a grandparent, a descendant of a grandparent, or a stepchild, the law presumes the will maker intended the beneficiary’s share to go to that person’s descendants. In simpler words, if your beneficiary was in that close family category, their children (or other direct descendants) are treated as the next in line to receive the inheritance.

This rule applies only if there is no other plan in the will or trust. You can override this by clearly stating your wishes in the legal document. However, the anti-lapse law helps when the will maker forgot to revise a will or neglected to add instructions about the share of a deceased beneficiary.

The Importance of Regularly Updating Your Estate Plan

Keeping your estate in line with current circumstances is essential. Marriage, births, shifting relationships, and the loss of loved ones are just some reasons to make sure everything still fits your goals. Waiting until you are in distress can lead to hurried decisions and potential oversights.

A few reasons to revisit your plan include:

1. A primary beneficiary has died, and you need new designations.
2. You want to add or remove certain heirs, such as grandchildren.
3. Major life events (moving to a different state, divorce, etc.) have changed your priorities.

Living documents like wills and trusts work best when they reflect your present outlook. Regular reviews can help you catch mismatches before they turn into bigger problems.

Seeking Guidance From a Michigan Estate Planning Attorney

State laws can change, and each family’s dynamics are different. Working with a lawyer who handles estate plans can help keep your wishes on track. You might need to decide whether per stirpes or a more direct arrangement is right for you. You may also want advice on naming multiple backup beneficiaries.

Legal counsel can review your existing documents, suggest updates, or help explain which plan best fits your family. Having that guidance often saves time, frustration, and money later, particularly if someone disputes a will or trust after a loved one has passed away.

Protect Your Family’s Future: Contact Bassett Murray Law Group Today

We care about helping Michigan families safeguard what matters most. If you have questions about changing your beneficiaries or wish to create a solid estate plan, call us at 734-930-9200 in Ann Arbor or 231-427-2292 in Petoskey. You can also visit our Contact Us page to learn more. Taking a moment to revisit your estate plan can prevent future confusion and heartache. Let’s work together to place your loved ones on a confident path forward.