It can be stressful when the unexpected passing of a loved one devastates a family, especially when they were unable to leave a will. This situation, called intestacy, can lead to complications regarding the distribution of assets.
The state steps in
When a decedent dies intestate, succession laws for the state. Before the state considers distributing assets, it must cover all the decedent’s debts. Then, the state will determine that the distribution of estates and assets is valid and lawful.
Determining the distribution of assets
Here’s how the surviving family members can acquire the decedent’s assets.
- Legal spouse and children: The spouse will inherit one-half of the decedent’s estate, and the remaining half will be divided equally among the children.
- Legal spouse with no children: The spouse will inherit the entire estate.
- No spouse and no children: The state will distribute assets to any living parents or siblings.
Based on intestate succession, the order of distribution follows this flow. If no descendants come forward or none are proven to be related to the decedent, the estate will go to the state.
Probate exceptions and guidance
Not all assets will pass through a court-supervised probate process. Life insurance proceeds, bank accounts with special instructions upon death, transferred stock under the beneficiary’s name and real estate already under the beneficiary’s name don’t need to go through probate.
Everyone would rather have a say in who gets what after their passing. Unfortunately, many people pass away before they’ve had a chance to plan their estate. If someone dies without a will, the state will distribute assets according to their formula. Although this process may be painstaking, it will be easier with the proper guidance and counsel.
