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Worldwide, most federal and local governments have inheritance laws in place to equitably distribute assets from an estate to relatives or others names as heirs — and to protect bequests included in a will or Revocable Living Trust. This may seem like a very personal issue to those involved, but an expected $41 trillion will be distributed to heirs in the next 50 years in the United States alone.

In the U.S., upon the death of a loved one who has prepared all of the legal documents, the will still has to "go through probate", or a procedure involving the filing of proper forms, filed with a local probate court which legally orders fair distribution of the inheritance.

The job of executor, or someone named in the will to settle the estate, often includes filing the proper papers with the probate court, paying off taxes or debt owed by the deceased, and distributing property to the designated heirs named in the estate. Many localities provide for set amounts of the estate to be paid to lawyers and the executor.

Most wills, fortunately, run their normal legal course, but things get a bit more complicated if there is property to be distributed in more than one state - in which case different inheritance laws and probate proceedings may apply.

Similarly, when an estate is bequeathed by a close relative or family member living in a foreign country, it becomes highly advisable to hire a local lawyer within the country (from which the will originated) to obtain applicable information. A Web search for, i.e., "Spain inheritance law" may also prove helpful for a quick overview of foreign legal obligations.

What if there is no will?

This is called being intestate and can create expensive problems for those who stand to inherit assets from an estate. Grief creates stress in any family and trying to remain calm while dividing up the worldly possessions of a loved one without any guidance has torn many loving families apart.

To make sure that your family does not have to face this turmoil, you should take the time to plan your estate well in advance of when you expect to need it. Discussing your wishes when you are healthy and death is a far off event is much easier than bringing up the subject before a serious surgery or during a terminal illness.

More about inheritances around the Web:

Executors and Probate Court - Resources Center - Helpful guide from Nolo.com covering the responsibilities of the executor of a will, probate court shortcuts by U.S. state, FAQ, probate glossary, downloadable forms.

Guide to Property Inheritance - Comprehensive directory of information detailing local tax laws and civil codes regarding inheritance in the U.S., Canada, U.K., and countries worldwide.

1800 Probate Online - A directory of probate lawyers and probate law by U.S. state, as well as related resources, glossary of law terms, FAQ.

Make Your Inheritance Count - Motley Fool.com guide with tips & advice on fitting an inheritance into an overall financial plan and investing a windfall wisely.

Inheritance Tips - A broad overview with advice on managing an inheritance, with related resources from AARP.

also see in Your Money -> Investing

The information provided on these pages is intended as reference
only and does not constitute professional legal advice.