What is a Laughing Heir – And Can It Be Avoided in Illinois?

Have you ever fantasized about receiving a notification stating that your great, great, great-uncle Henry has died, leaving you his entire huge estate? At one time or another, most of us have had this happy daydream. While it is extremely rare in most states for this to occur, there is a name given to those who unexpectedly inherit in this manner. A “laughing heir” is the heir of an estate who is so remotely related to the decedent that he or she feels no grief over the decedent’s death.

The legend of the laughing heir can also be seen as a bit of a cautionary tale about having an estate plan prepared so your assets can go where you want them to go. When a person dies without a will, it is known as dying “intestate.” Each state has intestacy laws that dictate the succession of relatives who will inherit. Some states will continue looking for a relative, no matter how distant, and will usually be successful.   

If you want to avoid any possibility of a laughing heir following your death, now is the time to speak to a knowledgeable Naperville, IL estate planning attorney from Gierach Law Firm. If you happen to be that rare person who is notified that you are the laughing heir, you can also benefit from speaking to a highly experienced estate planning attorney who can help you determine whether the inheritance is real.   

How Do Illinois Intestacy Laws Work?

The state of Illinois is one of those states that will continue looking for an heir, no matter how distant. First, it is important to know that only probate assets will pass through the Illinois rules of intestate succession. A probate asset is one owned solely in the name of the decedent without a beneficiary designation.

Assets like life insurance, retirement accounts, investment accounts, and bank accounts typically have a named beneficiary. If the beneficiary designation is left blank – which happens much more often than you might imagine – the asset becomes a probate asset. With no immediate relatives, Illinois rules of intestate succession take precedence, and the state will begin looking for heirs, no matter how distant.

Who Inherits Under Illinois Rules of Intestate Succession?

Illinois uses the term “per stirpes” distribution. This refers to the fact that each line of descent takes an equal share of the decedent’s estate.  Intestate succession in Illinois is as follows:

• Level One—Spouses, the children of the decedent, and other descendants of those children, such as grandchildren and great-grandchildren. 
• Level Two—The parents of the decedent and any siblings or half-siblings of the decedent in equal shares. If one sibling died before the decedent, his or her descendants will receive that share.
• Level Three—If there is no spouse, no children, no descendants of those children, no parents, and no siblings, then grandparents, aunts, uncles, and cousins are next in line.
• Level Four—More remote relatives like great-great-grandparents, great-uncles and aunts, and second, third, and fourth cousins.
• Level Five—If there truly are no living relatives, the estate goes to the county where the decedent lived and to the state of Illinois.

Contact a Naperville, IL Estate Planning Attorney

Everyone, regardless of the size of their estate, can benefit from having an Illinois estate plan. It is important to be in control of whom your assets will go to after you pass, and it is never too early to have an estate plan prepared, so long as you take steps to update it regularly. 

If you are ready to begin your estate planning journey, contact a skilled Naperville, IL estate planning lawyer from Gierach Law Firm. You will benefit from lead attorney Denice Gierach’s education as a lawyer, a certified public accountant, and a master’s degree in management, creating a unique approach to client service. Call Gierach Law Firm at 630-228-9413 to schedule an appointment.