All or part of the assets of an estate that are passed on to the heirs after the death of the estate owner
Inheritance refers to all or part of the assets of an estate that are passed on to the heirs after the death of the estate owner. The inheritance may be in the form of a cash endowment, real estate, stocks, etc. Usually, the owner of the estate writes a will on how his or her wealth will be distributed to the heirs, and it only becomes executable after the person dies.
How an Inheritance is Distributed
The following are the basic steps of distributing an estate to the beneficiaries of a deceased estate owner:
Estate Planning Process
The asset distribution to the descendants of a deceased owner of an estate is determined during the estate planning process. In this process, the owner of the estate identifies all their heirs who are due to receive a portion of the inheritance.
Probate Process
For the inheritance process to begin, the will must first be submitted to a probate court. The probate court is required to enforce the distribution of the assets of the deceased according to the deceased person’s wishes the deceased in the will.
Inheritance Distribution Without a Will
In the absence of a will, the court will distribute the estate assets according to the rules set by the state where the deceased was a resident. One of the general rules is to determine the wishes of the deceased by checking to see if there are beneficiaries who had been appointed as such in retirement plans, stock certificates, and real estate property.
Inheritance Restrictions
When writing the will, the owner of an estate may put certain restrictions in place as to who is paid, how much is paid, and how the inheritance is to be used. One of the common restrictions is that money can only be transferred to beneficiaries once they reach majority age, or when they achieve certain milestones, such as college graduation or marriage.