Heir apparent is a term used in estate planning to describe the direct lineage relatives of a deceased person. The heirs are designated in the last will and testament. Upon death, each heir apparent receives property that is granted to them through the will.

If there is no will, each heir apparent will receive inheritance property according to state probate laws. The most common heirs include the surviving spouse, children, grandchildren, siblings, and parents. Aunts, uncles, and cousins ​​can also fall into the heir apparent category.

Most people have living relatives, but when the decedents have no direct lineage relatives and do not execute a will, the inherited assets can be transferred to the state where the decedent resided. Ownership of the estate is held in reversion, giving heirs time to claim ownership. Once the revocation dormancy period expires, real estate can be put up for sale through public auctions.

People can disinherit heirs by including a disinheritance clause in their last will and testament. The clause must include the specific reasons for disinheriting the heirs. Otherwise, the heir apparent can challenge the will, claiming that the decedent was not of his or her own mind or under the influence of someone else when executing the will.

The last will and testament is a crucial part of probate and trusts. When estate assets are not transferred to a trust, the estate must go through the probate process. Probate is necessary within the US to resolve estate matters and ensure that heirs receive inherited property that has been willed or in accordance with state probate laws. The average duration of succession is 6 months or more.

Trusts do not have to go through probate and estate property can be distributed fairly quickly. The last will is transferred to the trust and provides directives for the distribution of assets. Trusts are generally used when estate assets are valued at more than $100,000. The last will is kept private when trusts are arranged, while the will becomes a matter of public record with probate.

Individuals can use estate planning strategies to protect certain assets from probate. These may include: financial portfolios, retirement accounts, life insurance policies, bank accounts, and titled property, including cars and real estate.

Account holders can establish beneficiaries payable on death (POD) or transferred on death (TOD) to financial accounts. POD beneficiaries are assigned to checking and savings accounts, while TOD beneficiaries are assigned to investment accounts. TOD recipients can choose to transfer funds to a new account or withdraw money from accounts.

Beneficiaries do not have access to financial accounts while the account holder is still alive. Upon death, the executors of the estate obtain the values ​​as of the date of death from the financial institution. The forms are sent to the county tax assessor to verify that the decedents do not owe taxes. If tax payments are current, date of death forms are returned and funds are distributed. When taxes are due, the estate must remit payment in full before the estate money can be distributed.

The last will and testament allows the decedents to specify inheritance gifts for each heir apparent. Gifts are classified as specific or general. Specific gifts include valuables such as family heirlooms or antiques, while general gifts include personal belongings such as clothing, china, and home furnishings.

Every person of legal age must grant a last will and testament. Probate attorneys can draft a basic will for less than $100. A good source for locating probate attorneys and learning about estate planning is the American Bar Association website at abanet.com.