Why is Naming Contingent Beneficiaries Important

Why Is Naming Contingent Beneficiaries Important?

By Patricia Louise Nelson

Many of my client express frustration when I ask “So, if your spouse, all of your children, all of their children, and everyone else below you on your family tree dies before you, whom or what would you like to benefit from any remaining assets?” The most common response is “Come on! That is so unlikely that it’s ridiculous!!” I agree. 

And yet, it could happen . . . .

If it does, Oregon statutes say who gets your assets.  The people specified in the statues may be family members whom you do not wish to benefit.  Or they could simply be people you do not know, have never met, and are certainly not unhappy that you have died.  We call these beneficiaries “laughing heirs.”  Why leave your assets to strangers?

Or worse . . . .

If no one qualifies as your heir under the Oregon statutes, then your remaining assets go to the Oregon Department of State Lands.  I have yet to have a client intentionally give their assets to the State of Oregon.

So, I encourage you to name more distant family members or friends to take in this unlikely situation.  AND, name someone to stand in line behind them if they too are not then living.  At the end of that line, I encourage you to name a charity or charities to take the assets. That way, your assets benefit someone or something you like rather than passing to strangers or the State of Oregon