The Simultaneous Death Act is a concept of law that addresses the legal disposition of estates, assets, and rights of inheritance when two people pass away at the same time. This Act allows the court to assume that the person who died first in a situation of simultaneous death is the true decedent. It is generally assumed that the one who died first was in possession of all the things that would have been acquired through inheritance.
What Does the Simultaneous Death Act Mean for Business Professionals?
For business professionals, the Simultaneous Death Act has implications for estate planning. A business owner who wants to transfer assets and rights to his or her heirs when their business is sold should establish a trust or will to ensure that their wishes are followed. If there is no plan in place for the transfer of assets upon the simultaneous death of both the business owner and his or her spouse, then the court will apply the Simultaneous Death Act to distribute the estate according to the law.
What Are the Implications of the Simultaneous Death Act on Estate Planning?
The Simultaneous Death Act underscores the importance of proper and thorough estate planning. Without sufficient planning, it is difficult to ensure that a person’s wishes regarding estate distribution are honored upon their death. Business owners should consider creating a comprehensive will or trust and regularly updating it to reflect any changes in circumstances to ensure that their assets are properly distributed at the time of their death, including in the event of simultaneous death.