What Is Intestate?
Intestate is a legal term that describes the situation when someone dies without leaving a will. This means that the person has not made any plans or arrangements for what should happen to their assets after they die.
This can cause many problems for the deceased person's family, as they will have to go through a legal process called intestacy to determine the distribution of the deceased person's assets.
How Does Intestacy Work?
When someone dies intestate, their assets will be distributed according to the laws of intestacy in their state. These laws vary from state to state, but they all follow a similar general pattern.
The first step is for the court to appoint an administrator to handle the estate. This person will distribute the deceased person's assets according to intestacy laws.
The next step is for the administrator to determine the heirs of the deceased. This can be a complicated process, as it may involve tracing the deceased person’s family history to find distant relatives entitled to a share of the estate.
Once the administrator has determined who the heirs are, they will distribute the assets of the deceased accordingly. The distribution of assets will usually be equal among the heirs, but there are exceptions to this rule.
Risks of Dying Intestate
Dying intestate can cause problems for your family. Firstly, it can be costly, as your family will have to hire an administrator and go through the legal process of intestacy.
It can also cause stress, as the family will have to deal with the division of assets and the complications that come with it.
Finally, dying intestate can cause disagreements and conflict within your family, as opinions can differ on who should inherit what.
How Are Assets Distributed When You Die Intestate?
If there is no will, the Uniform Probate Code (UPC) says intestate succession rules will apply.
Under intestacy, the decedent's estate will go to their closest relatives. The order of intestate succession is as follows:
Thus, if you die intestate, your close relatives will inherit your estate before your distant relatives.
If you die intestate and you have children who are adopted, they will be treated the same as blood descendants in the intestate succession. This means that they will inherit your estate before any other relatives.
If you are married and die intestate, your spouse will inherit your estate before any other party, including your children.
If you die intestate, your friends, non-relatives, and even supported charities will not inherit anything from your estate.
How to Avoid Intestacy?
The best way to avoid intestacy is to make a will. This document will allow you to choose how to distribute your assets after you die.
It is crucial to update your will regularly, as your circumstances may change. You should also ensure that your family knows the location of your will and how to find it.
If you die without a will, your family will have to go through the intestacy process. This can be costly, stressful, and conflictual. To avoid this, create a will and keep it up to date.
The Bottom Line
Dying intestate means you do not have a will, and your assets will be distributed according to intestacy laws. This can be a costly, stressful, and conflictual process for your family. To avoid this, create a will and keep it up to date.
It is crucial to remember that the deceased person’s assets under intestacy are distributed to the closest relatives. This intestacy order is spouse, children, parents, siblings, grandparents, aunts and uncles, cousins, nieces, and nephews.
FAQs
1. Under intestacy, what happens if the deceased does not have any relatives?
If the deceased does not have any relatives, their estate will go to the state.
2. Who decides how the assets are distributed when someone dies intestate?
The administrator of the estate will decide how to distribute the assets.
3. Is it possible to intestate if you have a will?
No, it is not possible to intestate if you have a will. If you die with a will, your assets will be distributed according to your wishes.
4. What happens to the deceased and their spouse's joint account if they die intestate?
If the deceased has a joint account with his spouse, the account will go to the surviving spouse.
5. How was tax applied to intestacy?
Under the old intestacy laws, the estate would be subject to estate taxes. However, under new intestacy laws, the estate is not subject to taxes.
