In most states, when a beneficiary dies before the will maker, the gift originally left for the beneficiary may go to the beneficiary's heirs, if the beneficiary is a relative of the will maker. But if the deceased beneficiary isn't related by blood to the will maker, then the gift could potentially lapse -- meaing that the beneficiary's heirs won't be able to receive it.
Fortunately, most states have anti-lapse statutes that allow a beneficiary's heirs to still receive the gift even if the beneficiary dies before the will maker.
What Happens When a Gift 'Lapses'?
Under general probate law, a lapse means that the person who was originally supposed to receive a gift won't be able to anymore, and that gift will be returned to the will maker's estate. This scenario usually occurs when a beneficiary of a will dies before the person who drafted the will.
If there is a secondary beneficiary listed in the will, then the lapsed gift can go to that person. In circumstances where there is no secondary beneficiary, then the gift will go back to the beneficiary's residuary estate.
Gifts that are placed in the residuary estate are "leftover" gifts that aren't given to a specific person; probate courts take over the residuary estate and distribute the items according to your state's intestate succession rules.
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