What happens to a gift when the sole beneficiary under a will dies before the testator in North Carolina?

Detailed Answer

When a will provides a gift to a beneficiary who dies before the testator, North Carolina law generally treats that gift as lapsed. Under N.C. Gen. Stat. § 31-42, a lapsed gift fails unless an anti-lapse provision applies. You can read the statute here: N.C. Gen. Stat. § 31-42.

If the predeceased beneficiary was a close relative of the testator (for example, a child, sibling, or parent) and left surviving descendants, the anti-lapse statute allows that gift to pass to the beneficiary’s descendants per stirpes. The law presumes this result only for those family members identified in § 31-42.

When no anti-lapse rule applies, the lapsed gift falls into the residuary estate. North Carolina’s residuary statute explains how to distribute after specific and general gifts: N.C. Gen. Stat. § 31-43. If the will names no residuary beneficiary, or if all residuary gifts lapse, the estate passes under North Carolina’s intestacy laws.

Planning for the unexpected death of a beneficiary helps ensure your estate distributes as you intend. Testators often include alternate beneficiaries or explicit anti-lapse language to avoid leaving a lapsed gift that could trigger unintended results or intestacy.

Key Points to Remember

• Lapsed Gift: If a beneficiary dies before the testator and no anti-lapse rule applies, the gift fails.
• Anti-Lapse Statute: N.C. Gen. Stat. § 31-42 lets close relatives’ descendants inherit a lapsed gift per stirpes.
• Residuary Estate: A lapsed gift without anti-lapse falls into the residuary estate under § 31-43.
• Intestacy: If no residuary gift remains, state intestacy rules govern distribution.
• Will Drafting Tip: Include contingent beneficiaries or explicit anti-lapse clauses to avoid unintended lapses.

Proper estate planning and clear will drafting help prevent a lapsed gift from undoing your intentions. Without contingency plans, your estate may distribute in ways you did not anticipate.

At Pierce Law Group, our attorneys guide you through estate planning and probate administration. We help you draft wills that reflect your wishes and address potential complications like predeceased beneficiaries. To discuss your situation, email us at intake@piercelaw.com or call (919) 341-7055.