the KFORD group logo

 

8620 North New Braunfels Suite 300, San Antonio, TX 78217

 

Phone: 210-340-8351

Fax:     210-340-8359 

 

Website: theKFORDgroup.com

March 2024

Heirs or Beneficiaries?

Heirs or Beneficiaries

The terms heirs and beneficiaries are interchangeable, right? Not necessarily when it comes to distributing your property after death. So, knowing the difference between the two is essential in estate planning.


THE DEFINITION OF HEIRS
An heir is a legally identified person who’s entitled to receive your estate property when no will or trust dictates distribution. In that case, state law dictates how an estate is distributed and which heirs are entitled to assets.


Generally your heirs, in succession order are:

  1. Your spouse

  2. Your children

  3. Your parents

  4. Your siblings

  5. Your grandparents

  6. Your next of kin. If no next of kin, your property would revert back to the state.


BENEFICIARIES DEFINED
A beneficiary is a person you’ve specifically named to receive proceeds and assets from:
  • Life insurance,

  • Employer-provided qualified retirement plans,

  • Individual retirement accounts,

  • Trusts, and

  • Annuities, as well as property distributed under your will.


A beneficiary may or may not be an heir and vice versa. Understanding a beneficiary's role in your estate plan and their rights to your assets or property is a key element in planning. If you don’t name beneficiaries with a will or other planning tools, they’ll be chosen for you.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.