The term “pretermitted heir” is a fancy way of describing someone who has been left out of an estate plan. An estate plan is a set of instructions for disposing of a person’s assets after they pass away. When a person dies without an estate plan in place, or with an estate plan that doesn’t include an heir, that person is a “pretermitted heir.”
Most often, pretermitted heirs are children who were never listed or mentioned in the estate plan. For example, if a parent has two children but fails to include the second in their estate plan, that child would be considered a pretermitted heir. A spouse might also be considered a pretermitted heir. In this case, any assets that were not specifically listed in the estate plan would be considered to have been omitted or left out.
What Are the Implications of Having a Pretermitted Heir?
Having a pretermitted heir can cause confusion and disputes among family members. Since they weren’t mentioned in the estate plan, the pretermitted heir may have been unaware of their right to inherit and be surprised to find out about it after the plan was put into action. This can lead to family disputes and delays in settling the estate.
From a legal perspective, pretermitted heirs have the same right and expectations as other heirs. Depending on the laws of the state, they may be eligible for a portion of the estate plan. If the omission of the heir was not intentional, then the amount of inheritance may be the same or a portion of what other heirs received.
What Should Business Professionals Take Away From This?
For business professionals, understanding the concept of pretermitted heirs is important as it can help avoid legal disputes between family members. When creating an estate plan or advising a client on their business succession plan, it is important to include all potential heirs, even if those heirs have not yet been born or are not presently part of the family. Having an air-tight estate plan in place will ensure that all potential heirs are properly recognized and that legal disputes are avoided.