What is the difference between a beneficiary and an heir?

A beneficiary is named in a will, trust, account, policy, or other document to receive something. An heir is a person who may inherit under state law, especially when there is no valid controlling document.

General information

• The same person can be both a beneficiary and an heir.
• An heir does not on its own receive an asset that has a valid different beneficiary.
• State law controls who qualifies as an heir.

Service steps to consider

1. Possible resource or approach: legal names and clear relationships.
2. Considering whether to name backups when the form allows.
3. Reviewing the plan after births, deaths, marriage, or divorce.

Quick check

• Are all names spelled the right way?
• Did I name backups?
• Do my account forms match my will?

How Complete Wills can help

Complete Wills' will-based questionnaire can record the names, beneficiaries, executor choices, guardian nominations, and other instructions used to prepare the included documents. The customer remains responsible for reviewing the result and completing the applicable state signing requirements. Support can explain fields but cannot tell the customer whom to choose or how to divide property. Customer support can explain website features and questionnaire fields, but it cannot choose documents, people, distributions, or legal terms, interpret a completed document, or explain how the law applies to a person's facts. Only a separately engaged licensed attorney may provide legal advice within the attorney's engagement.

Important limits

• A will does not control every asset. Title, contract terms, trust ownership, and beneficiary forms may control instead.
• Spousal rights, omitted-family rules, disinheritance, and will-signing rules vary by state and may require an attorney. This article gives general information only. A licensed attorney can explain how state law applies to a specific estate plan or document.