Case Study 5 – How much will each heir inherit?
George, a 98 year-old widower, has two children, Alice and Bob. Alice has one child, Carrie. Bob has five children: Dave, Ed, Frank, Gail, and Hank. George's will leaves everything he owns to his children if they survive him, if not, then per stirpes (right of representation) to the descendants of his children. George's distributable net estate is estimated to be $100,000 (after taxes, creditors, and expenses have been paid).
Answers for Iowa Residents
The following answers are based upon Iowa law as of October 2004. The laws in other states may be different. Laws are subject to change, so please ask your attorney for answers to specific questions.
1. Assume that both Alice and Bob survive George. How will George’s estate be distributed at his death?
- Iowa Answer: A.
- Alice will inherit $50,000 and Bob will inherit $50,000.
2. Assume that George passes on, survived by Carrie, Bob and Bob’s five children. At George’s death, how will his estate be distributed?
- Iowa Answer: B.
- Bob will inherit $50,000 and Carrie will inherit $50,000.
3. Assume that George passes on, survived by Alice, Carrie, and Bob’s five children. At George’s death, how will his estate be distributed?
- Iowa Answer: B.
- Alice will inherit $50,000 and Dave, Ed, Frank, Gail, and Hank will each inherit $10,000.
4. Assume that George passes on, survived only by his grandchildren. How will his estate be distributed among his grandchildren?
- Iowa Answer: A.
- Carrie will inherit $50,000 and Dave, Ed, Frank, Gail, and Hank will each inherit $10,000.
5. The answers to the first four questions are different if Alice or Bob are survived by spouses.
- Iowa Answer: False
6. If George dies without a will, how will his estate be distributed if both Alice and Bob pass on before him under Iowa law?
- Iowa Answer: A.
- Carrie will inherit $50,000 and Dave, Ed, Frank, Gail and Hank will each inherit $10,000.
7. George’s will can direct that if both of his children pass on before him, his grandchildren will share equally.
- Iowa Answer: True
8. If George’s will leaves his property to the survivor of his two children, and Bob passes on before George, Bob’s five children will be disinherited.
- Iowa Answer: True
Return to Prepare Your Estate Plan Case Study 5.
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Credits
Adapted for use in the Legally Secure Your Financial Future: Organize, Communicate, Prepare program.
Content Development by:
Anne E. Hensley
Advised by: John R. Baker, J.D.,
Staff Attorney, Iowa Concern Hotline,
Administrator of Beginning Farmer Center, Iowa State University Extension.
This information is provided as a public service and is designed to acquaint you with certain legal issues and concerns. It is not intended to be a substitute for legal advice, nor does it tell you everything you may need to know about this subject. Future changes in the law cannot be predicted, and statements in these materials are based solely on the laws in force on the date of release noted on this page.
This document is for non-profit educational purposes only. This document may not be used by a profit-making company or organization. When used by a non-profit organization, appropriate credit must be given to the Cooperative Extension Legally Secure Your Financial Future: Organize, Communicate, Prepare education program. Materials for this program were developed by a team from six land-grant universities. The program is included in the program toolkit of the Cooperative Extension Financial Security in Later Life national initiative. For more information go to: http://www.csrees.usda.gov/fsll.