A will is a legal document that allows a person to control how their assets are managed after they pass away. The person who writes a will, called the testator, can create an itemized list of assets and a list of beneficiaries who would inherit the estate. However, it is estimated that only a third of Americans have a will. So few people have a will, which could spell serious problems for families.
When a person dies without a will, it means they have died intestate. Intestate can impact how an estate is managed when a person passes away. Here is what you should know:
How does intestacy impact the distribution of your estate?
When a person passes away with a will, it is the responsibility of an executor to take steps to protect the estate and fulfill the deceased’s last wishes. However, it is typically the responsibility of a state court to manage a deceased person’s estate if they have no will. When this happens, the court may assign an administrator to the estate.
The administrator’s role is to manage the estate and distribute assets to heirs based on intestate succession laws. This can mean the following for an estate:
- If there is a living spouse and no children, then the spouse inherits everything.
- If there are children and no spouse, then the children inherit everything.
- If there is a spouse and children, the spouse inherits the first $50,000 and half of the remaining estate, and the children inherit the other half.
- If there are parents and no spouse and children, the parents inherit everything.
- If there are siblings and no spouse, children or parents, then the siblings inherit everything.
Many people want to control how their assets are distributed after they pass away. Professional legal guidance can help people without a will begin their first draft.