A deceased person cannot inherit the assets in your estate. A beneficiary’s role is to receive the assets in your estate, and this role is key to an estate plan. In general, if your beneficiary passes on before you, any asset that is earmarked for them will be returned to your estate. However, you can typically name successor beneficiaries on assets or accounts, and/or specify beneficiary interests to be handled either per-stirpes or per-capita.
It’s important to note that each state typically has estate laws that dictate how a situation such as this is handled. In many states, the estate returns to the grantor if the beneficiary passes first, even with an irrevocable trust in place. In some states, the assets will be passed to the beneficiary’s heirs or beneficiaries instead. That’s why it’s important to update your beneficiary list when necessary and know your state’s laws regarding estates.