Heir: Definition, examples and more

You’ve probably heard the term “heir” before. And you probably have a pretty good idea of what it means. But did you know that in legal terms, “heir” has a specific definition? And that, despite their similarities, an heir is different from a beneficiary?

Read on to learn about what exactly an heir is, how it differs from a beneficiary, the different types of heirs and much more. 

Key takeaways

• An heir is someone who’s legally entitled to inherit assets from a deceased person’s estate if the deceased passes away without a will or trust in place.

• Unlike an heir, a beneficiary is specifically designated in a will to receive assets from a deceased person.

• There are different types of heirs.

• An heir doesn’t have to be a blood relative to the deceased person.

An heir is someone who’s legally entitled to inherit assets from a deceased person’s estate if the deceased—legally called the “decedent”—passes away without a will or trust in place. This is known as “dying intestate.”

When someone dies intestate, “intestate succession” takes place, and a special court—called a probate court—uses state law to identify heirs and oversee the distribution of the decedent’s assets.

Assets are commonly distributed in this order of succession:

1. Surviving spouse or domestic partner

2. Surviving children if there’s no living spouse or domestic partner

3. Next closest relatives if there are no living children 

4. State government if no heirs can be found

The federal government may impose an estate tax on assets before they’re distributed to heirs. You might want to read the IRS rules on whether the sale of inherited property is taxable.

And a few state governments may impose an inheritance tax on assets after an heir receives them. But that depends on the size of the inheritance and the heir’s relationship to the decedent.

While they’re similar, an heir and a beneficiary aren’t exactly the same thing.

Remember: An heir is someone who’s legally entitled to inherit assets from a decedent when there’s no will or trust in place. A beneficiary, on the other hand, is a person or organization that’s specifically designated in a will to receive assets from a decedent.

Another term you might come across is “distributee.” A distributee is someone who inherits property from an estate. So once an heir or beneficiary receives an inheritance, they become a distributee.

Different types of heirs may have different inheritance rights, depending on their relationship with the decedent.

Heirs apparent are immediate family members who are first in line to receive a decedent’s assets—usually a surviving spouse or the decedent’s children.

Heirs apparent are practically guaranteed a share of the estate except in certain circumstances—like if they’ve been excluded in the decedent’s will.

Presumptive heirs may appear to be first in line now, but that could change. For example, a stepchild from a first marriage could lose their share to a biological child from a second marriage.

Collateral heirs are blood relatives who aren’t direct descendants of the decedent but come from a common ancestor. Examples are siblings, cousins, nieces and nephews, aunts and uncles.

Lineal heirs are direct descendants of one’s bloodline. Sometimes called “issues” or “heirs of the body,” lineal descendants include children, grandchildren, great-grandchildren and so on.

Adoptive heirs are adopted children, who generally have the same rights as biological children.

Here are the answers to some frequently asked questions about heirs:

Heirs are legally entitled to inherit assets from a decedent’s estate if the decedent dies intestate. And when someone dies intestate—meaning without a will or trust in place—then a probate court uses state law to identify heirs and oversee the distribution of the decedent’s assets.

But by estate planning, a person can make sure that upon their death, specific assets go to specific people or organizations. And that can make it easier to handle financial matters after a death in the family.