What is the difference between an heir and a beneficiary?

On Behalf of | Jan 15, 2025 | Estate And Trust Litigation

The loss of a loved one is a traumatic life event. For some people, having to deal with the estate plan afterward is extremely complicated because it may contain provisions that they weren’t aware of. Challenges to the estate plan can sometimes occur under these circumstances. 

It’s possible that an heir will question the validity of the estate plan if they aren’t in it. This can lead to beneficiaries having to go through a lengthy probate process. While some people use the terms “heir” and “beneficiary” interchangeably, these terms mean very different things. 

Heirs

Heirs are people who would receive a part of a person’s estate if that person died without having an estate plan. This typically includes the spouse and children of the decedent, but other family members can also be included. 

Beneficiaries

Beneficiaries are people who are named in the estate plan, life insurance or financial institution account. This can be anyone the creator wishes, including family members, friends, charities and others. Some people opt to name their pet as a beneficiary. 

Because heirs are sometimes excluded from the estate plan, it’s possible that they may feel something is amiss with the plan. They may choose to contest the estate plan if they have a reason to believe that the estate plan was created under duress, because of fraud, due to lack of testamentary capacity or other similar reasons. This can be a complicated undertaking that may be a bit easier if they have someone on their side who can help them get their case together.