December 12, 2025
There are a lot of words that are often used interchangeably in day-to-day use, but which legally, have very different meanings. The words heir and beneficiary are a perfect example of that. While many people think they mean the same thing, they have very different meanings under Oregon law.
Understanding who qualifies as an heir and who is a beneficiary can help you make sure your estate plan reflects your wishes and avoids unnecessary conflict among loved ones. Let’s get into the differences and everything you need to know.
Let’s start with heirs. Under Oregon law, a person who inherits property is called an heir when there is no valid will. Oregon’s intestate succession laws (ORS Chapter 12) determine who those heirs are and in what order they inherit.
In simple terms, heirs are your legally recognized relatives. They may include:
Your surviving spouse or registered domestic partner
Your children or legally adopted children
Your parents, if you have no spouse or children
Your siblings, nieces, nephews, or other extended relatives
Heirs are only entitled to inherit when there’s no valid will or when a family member was unintentionally left out of an existing estate plan, for example, if a child is born or adopted after a will was written. In those cases, Oregon’s default inheritance rules decide who receives the deceased’s property and in what proportion.
If you have no surviving relatives, your estate may eventually revert to the State of Oregon.
A beneficiary is anyone named in a legal document, such as a will, trust, retirement account, or life insurance policy, to receive part of an estate after the original owner’s death.
Unlike heirs, beneficiaries don’t need to be related to you. They can include:
Family members
Friends or caregivers
Charitable organizations or nonprofits
In Oregon, beneficiary designations can also be added to certain accounts and assets, including:
Payable-on-death (POD) bank accounts
Transfer-on-death (TOD) securities or real estate deeds
Life insurance policies and annuities
It’s also important to know that beneficiary designations override your will for non-probate assets. For example, if your will leaves everything to your children but your life insurance policy lists your ex-spouse as beneficiary, the policy proceeds will go to your ex, unless that designation was revoked under Oregon law after divorce (ORS 112.315).
Related: The Dangers of DIY Estate Planning & How to Avoid a Contested Will
When creating or settling an estate, another area of confusion is between the executor of the estate vs. beneficiary roles. The executor (sometimes called a personal representative in Oregon) is the person appointed to administer the estate. Their job is to:
Locate and manage assets
Pay debts and taxes
Distribute property to the rightful beneficiaries or heirs
Sometimes, the same person can serve as both executor and beneficiary, such as a surviving spouse or adult child. However, it’s important that the executor remains objective and transparent throughout the process to avoid conflicts of interest.
Related: The Oregon Probate Process: Our Top FAQs
When it comes down to it, the difference between an heir and a beneficiary is simple: heirs inherit because of law, while beneficiaries inherit because of choice. Here’s a quick comparison to clarify the distinction:
|
Heir |
Beneficiary |
|
|
How they’re determined |
By Oregon’s intestacy laws |
Named in a will, trust, or financial account |
|
Relationship requirement |
Must be related by blood, marriage, or adoption |
Can be anyone (person or organization) |
|
When they inherit |
When there’s no will or, in some cases, an omission in a will |
When named in a legal document |
|
Examples |
Spouse, children, parents, siblings |
Spouse, children, friends, charities |
Someone can be both an heir and a beneficiary. For example, if your daughter is listed in your will, she’s your beneficiary and also your heir under Oregon law. But if she isn’t mentioned, she may still have certain rights as a pretermitted heir (a child who was unintentionally left out of a will).
The difference between heirs and beneficiaries matters because it influences how your estate and assets are distributed.
When you name beneficiaries, you decide who receives your assets, how much, and under what conditions. If you don’t make those decisions in writing, Oregon law makes them for you.
Here’s how it affects your estate plan:
Control: Choosing beneficiaries through wills, trusts, and designations ensures your estate follows your wishes, not the state’s default laws.
Avoiding conflict: Clear, updated beneficiary designations can prevent costly disputes among family members.
Nontraditional families: Oregon law doesn’t automatically recognize stepchildren, unmarried partners, or close friends as heirs. If you want these individuals to inherit, you must name them as beneficiaries.
Efficient transfers: Non-probate assets, such as retirement accounts or life insurance policies, can pass directly to beneficiaries without going through probate, saving time and money.
Can someone be both an heir and a beneficiary?
Yes. A family member named in your will or trust is both an heir under Oregon law and a beneficiary of your estate plan.
What happens if I forget to name a beneficiary?
If no beneficiary is named, assets usually pass through probate and may be distributed to your legal heirs under Oregon’s intestacy laws.
Do heirs have rights if there’s a valid will?
Typically, heirs do not inherit if a valid will exists. The exceptions are “pretermitted children”, which are children that were adopted, born, or conceived after the execution of a will that includes other children.
Can non-family members inherit under Oregon law?
Only if they’re named as beneficiaries. Oregon’s intestacy laws don’t recognize non-family members as heirs.
What happens if a beneficiary dies before me?
If your beneficiary dies first, their gift may lapse or pass to a contingent beneficiary. Updating your documents regularly ensures assets go where you intend them to.
If you want the peace of mind that comes with knowing your estate will pass smoothly to the right people, take the time to review your will, estate plan, and beneficiary designations.
At Gevurtz & Menashe, our estate planning attorneys help Oregon families create, update, and protect their plans so they can feel confident about the future. Whether you’re drafting your first will or revising an existing one, reach out today and we’ll help ensure your wishes are honored every step of the way.
