Creating a will is a crucial step in ensuring that your wishes for asset distribution and estate management are followed after your passing. However, if you die without a will, your estate becomes subject to intestacy laws. In this article, we'll explain what happens when you die without a will and how intestacy laws dictate the distribution of your assets.
Intestacy Defined: Dying without a will is referred to as dying intestate. When this occurs, the legal system steps in to determine how your estate will be distributed, including your assets, property, and possessions.
Laws Vary by Jurisdiction: It's essential to understand that intestacy laws vary from one jurisdiction to another, including between states. The rules that govern the distribution of your estate depend on your place of residence at the time of your death.
Default Heirs: Intestacy laws typically prioritize close family members as default heirs, such as spouses, children, parents, and siblings. The specific order of priority can differ based on the jurisdiction.
Spouse's Share: In many cases, a surviving spouse is entitled to a significant portion of the estate, even if you have children. The exact share may depend on the presence of children and other relatives.
Children's Share: If you have surviving children, they may receive a portion of the estate in addition to your spouse's share. The division among children can vary, with some jurisdictions splitting the assets equally among them.
Parents and Siblings: If you have no surviving spouse or children, intestacy laws may direct the estate to your parents, and if they are deceased, to your siblings or other close relatives.
Assets Without Designated Heirs: Some assets may not be subject to intestacy laws, such as assets held in joint tenancy with rights of survivorship or assets with designated beneficiaries, like life insurance policies or retirement accounts. These assets will pass directly to the joint tenant or named beneficiary.
Guardianship for Minors: If you have minor children and die without a will, a court will determine their guardianship based on the best interests of the children. This decision may or may not align with your preferences.
No Consideration of Personal Wishes: Perhaps the most significant disadvantage of dying intestate is that your personal wishes are not considered. The court's decisions are based solely on legal defaults, which may not align with how you would have preferred to distribute your assets.