direct inheritance

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Direct inheritance has two meanings that vary depending on the context. First, direct inheritance refers to inheritances that go directly to the heir instead of those going through an intermediary of some form like a trust

Second, direct inheritance may refer to heirs who are closely related to the descendant like children and parents. In some areas, inheritance taxes will differ based on whether the inheritances are direct or collateral, often with direct inheritance taxes being less or nothing. One must look at the local laws to determine how distantly related one can be and qualify as a direct inheritor. 

[Last updated in January of 2022 by the Wex Definitions Team]