If you die without a will, state intestacy laws determine how your assets will be distributed. These laws dictate who will inherit your assets, personal belongings, and money. Typically, only your spouse, registered domestic partners, and blood relatives can inherit under these laws, while friends and charities are excluded. Unfortunately, these laws can cause family disputes and add to the process’s difficulty, stress, and expense for your loved ones.
What happens if you die without a will?
California Intestate succession refers to the legal process of distributing a person’s property when they die without leaving a valid will. The state will determine who inherits your assets according to their intestacy laws. A person who dies without a will is said to have died “intestate.” If you die intestate, a local probate court will use state heirship laws to determine how your property will be distributed.
These laws first distribute assets to family members, including a surviving spouse or domestic partner, children (including adopted and stepchildren), parents, siblings, aunts, uncles, nieces, nephews, cousins, and distant relatives. However, if your family cannot locate you or doesn’t want to claim your property, it will be given to the state (escheated).
Moreover, dying intestate can also lead to disputes over the custody of minor children. A judge will appoint guardians for children and a conservator to manage their finances. It can be distressing for all involved.
In addition, your loved ones must pay an expensive and lengthy probate process to manage your estate. However, some assets don’t need to go through probate, such as jointly owned property, life insurance, 401(k) retirement accounts, and bank and brokerage accounts with a beneficiary designation.
Who gets your property?
The state law defines who will inherit the deceased’s property (including assets, personal belongings, and money). Intestate succession laws often give priority to a surviving spouse or domestic partner. Then, children and grandchildren may receive a portion of the estate. After that, siblings may get a share. And then parents and other relatives, depending on the state’s rules.
The order can become even more complicated when there are multiple marriages, stepchildren, children born outside the marriage, and adopted children. But a good rule of thumb is that heirs are closest to the deceased. It includes a surviving spouse, children, and descendants; parents; brothers and sisters and their descendants; grandparents; aunts, uncles, or cousins and their grandchildren.
Heirs must also outlive the deceased for a specified period to qualify for their share. That’s usually 120 hours or five days. However, some states have a shorter rule. It prevents people not close to the deceased from claiming a large share of the estate. It could lead to family disputes and expensive litigation.
Who gets your assets?
Intestate succession laws determine which assets are passed to heirs. Heirs generally include spouses or registered domestic partners, children, and other legal or blood relatives. It excludes longtime friends, stepchildren, and charities. Intestate estates are typically subject to probate, which can be costly and time-consuming.
When a person passes away, their surviving spouse will inherit the largest portion of their property. Children, including biological, adopted, and foster children, are next in line to inherit. However, a person’s legal separation or pending divorce can impact whether they are considered a spouse.
If a deceased person has no surviving spouse or children, the inheritance is awarded to parents and siblings (including half-siblings). In some states, grandparents can receive up to one-third of an estate. If none is possible, the estate passes to descendants of predeceased grandparents (aunts and uncles and nieces and nephews) or first cousins. Locating potential heirs can be challenging, especially when family members are estranged or living in different countries. The list can also become muddled when people cannot prove their relationship to the deceased.
Who gets your debt?
If a person dies without a will (called dying “testate”) or their choice is ruled invalid, the estate administrator must follow a state’s laws for distributing their assets. That process, known as probate, can take a few months to a couple of years. The estate’s debts must be paid off in a set order during that time. That typically includes funeral expenses, the cost of administering the estate, taxes, and hospital bills.
When the administrator divides up a deceased person’s assets, they only consider family members. That can include spouses, registered domestic partners, and blood relatives but not unmarried partners or friends.
If the deceased had a joint mortgage or car loan with someone else, their cosigner becomes responsible for paying it after death. And if the dead had a home equity loan, heirs can refinance or sell the property to pay it off. Creditors can also force the sale of a property to pay debts. That’s less common, but it does happen. A few estate planning tools, such as transfer-on-death designations and revocable living trusts, help keep assets out of probate and creditors’ hands.
What happens if you have children?
Children inherit an intestate share of their parent’s property in most states. It typically includes biological or legally adopted children, as well as grandchildren. The heirs also usually have spouses or registered domestic partners. If there is no surviving spouse or children, the deceased person’s siblings, aunts, uncles, cousins, and other close relatives may also receive shares. Stepchildren, longtime partners, and friends generally don’t get a percentage.
When someone dies without a will, each state’s intestate succession laws determine how their estate is distributed. This process is complex, time-consuming, and stressful for the family members left behind.
During the probate process, the personal representative will work to distribute your assets according to state law. After all the debts have been settled, the assets left will be divided among your heirs. To illustrate, if you have a spouse and children who survive you, your surviving spouse will receive the first portion of the estate, and your children will be entitled to the second portion. Then, your children’s children (your grandchildren) will take the next available share.