What happens if a Beneficiary of a Will is deceased?

Question: 

Category: Probate, Trusts, Wills & Estates
Location: New Jersey

Question: My wife is the executrix of her deceased mother's estate. The will states that her house is to be sold, and the proceeds of the sale divided equally between her 5 children, or their heirs. If one of the male children is deceased, does his share go to his wife or his children?

Your Reply: The exact language of the Will controls. If the Will states "to my children, x,y,and z PER STIRPES" then your deceased brother-in-law's children would receive his share. You should have the estate lawyer review the Will to give your wife the appropriate guidance. I hope this helps! Ron Cappuccio www.SaveYourEstate.com 856 665-2121

Combined Estate Tax Exemtion for $10mil

Starting in 2011 widows and widowers can add to their own estate tax exemption the unused exemption of the spouse who died most recently. This provision, plus an increase in the exemption amount to $5 million per person, enables married couples together to transfer as much as $10 million tax-free to their children or other heirs, either by making lifetime gifts or through estate plans. This 2-year provision expires January 1, 2013

New estate Tax Rates

Here is a quick summary of the new Estate Tax rates signed into law December 17, 2010

2010
Estate Tax
Exclusion amount: $5,000,000
Maximum tax rate: 35%
Carryover basis: Option to elect carryover basis instead of estate tax treatment

Gift Tax
Exclusion amount: $1,000,000 (no change)
Maximum tax rate: 35% (no change)

2011-12
Estate Tax
Exclusion amount: $5,000,000
Maximum tax rate: 35%

Gift Tax
Exclusion amount: $5,000,000
Maximum tax rate: 35% (no change)