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How is an estate distributed if a beneficiary dies before it is settled?

Question Details: My aunt died without a Will about 5 months ago. Therefore, her estate is being distributed once her house is sold, to 3 nieces, 2 of whom are sisters (the other nieces has no siblings). However, 1 of these sisters died last month before their aunt's estate was distributed. How is the aunt's estate distributed? Does it go the deceased sister's estate or directly to her surviving sister?" The deceased sister lived in NY.

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