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 Kentucky Residents
The following answers are based upon Kentucky law as of April, 2006. Laws are subject to change, so please ask an 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?
- Kentucky 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?
- Kentucky Answer: B.
- Bob will inherit $50,000, and Carrie will inherit $50,000.
- Per stirpes distribution means that Carrie stands in the shoes of her mother, Alice, and receives what her mother would have received.
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?
- Kentucky Answer: B.
- Alice will inherit $50,000, and Dave, Ed, Frank, Gail, and Hank will each inherit $10,000.
- Bob’s children will stand in his place and take (and equally divide among themselves) his share.
4. Assume that George passes on, survived only by his grandchildren. How will his estate be distributed among his grandchildren?
- Kentucky 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.
- Kentucky Answer: False
- Their marriage to Alice and Bob, respectively, give the spouses no claim to George’s estate.
6. If George dies without a will, how will his estate be distributed if both Alice and Bob pass on before him under Kentucky law?
- Kentucky Answer: A.
- Carrie will inherit $50,000 and Dave, Ed, Frank, Gail, and Hank will each inherit $10,000.
- Absent a will, when any member of a class first entitled to inherit is dead, any descendants shall take their share of the deceased parent’s entitlement.
7. George’s will can direct that if both of his children pass on before him, his grandchildren will share equally.
- Kentucky Answer: True
- A will may direct the Executor to distribute the inheritance in a variety of ways to deal with different contingencies.
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.
- Kentucky Answer: True
Return to Prepare Your Estate Plan Case Study 5.
View the Prepare Your Estate Plan learning lesson.
Credits
Adapted for use in the Legally Secure Your Financial Future: Organize, Communicate, Prepare program.
Content Development
Reviewed for use in Kentucky by:
Matthew Holland, law student,
Louis D. Brandeis School of Law, Samuel L. Greenbaum Public Service Program
University of Louisville, Kentucky.
Supervised by:
Ron Marstin, Urban Managing Attorney,
Legal Aid Society, Louisville, Kentucky.
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.