Dying without a will, known as dying “intestate”, can have significant consequences for your loved ones. Instead of your wishes determining how your estate is distributed, state laws will dictate who inherits your assets, potentially leading to confusion, costs, delays, and disputes.
Probate Process
If you die without a will, your estate will go through probate, a court-supervised process to distribute assets. Probate is a process which allows creditors and adverse heirs to contest distribution of the estate, and to claim a portion of the estate. This can lead to additional costs and delays in distributing your assets to your intended heirs.
- Public notice:
- The court requires your heirs to publish notice in local newspaper – alerting adverse heirs and creditors to bring forth claims or be barred from recovering against the estate.
- Administrator Appointment:
- The court appoints someone, usually a family member, to serve as the administrator. This person handles debts, taxes, and asset distribution.
- Inventory of Assets:
- The administrator must identify and value your assets, which may take months or longer.
- Debt Payment:
- Debts and taxes are paid before distributing remaining assets to heirs.
- Payment of costs and fees:
- Executors, administrators, and attorneys will all be paid out of the estate prior to heirs receiving distribution.
- Distribution:
- Your assets are distributed according to the state scheme – state intestacy laws, which is discussed in further detail below.
The probate process can be time-consuming, expensive, and public, exposing your estate to additional scrutiny and costs.
Potential Issues Without a Will
Failure to prepare a Will can create several complications:
- Delayed Distribution:
- Without clear instructions, probate court must appoint an administrator to handle your estate, leading to delays.
- Family Disputes:
- Relatives may disagree about who should inherit, causing emotional and financial strain.
- Unintended Beneficiaries:
- State laws might prioritize family members you barely know over individuals you intended to benefit.
- Guardianship of Minor Children:
- Without a will, the court decides who becomes the guardian of your minor children. This decision may not reflect your wishes.
How Assets Are Distributed
When you die without a will, your assets are distributed according to state intestacy laws. This process can exclude individuals you may have wanted to provide for, such as close friends, unmarried partners, or charities. These laws vary but generally follow a hierarchy of relatives:
- Spouse and Children
- In most states, your spouse and children are the first to inherit. However, the division may not align with what you would have chosen.
- For example, your spouse might only receive a portion of the estate, with the remainder divided among your children.
- Parents and Siblings
- If you have no spouse or children, your parents or siblings typically inherit your estate.
- Extended Family
- In the absence of close relatives, more distant family members, such as cousins or aunts and uncles, may inherit.
- The State
- If no living relatives can be found, your assets may “escheat” to the state, meaning the government takes ownership.
Benefits of Having a Will
Creating a will provides numerous benefits, including:
- Control Over Your Estate:
- Decide who inherits your assets and in what proportions.
- Guardian Designation:
- Appoint a trusted guardian for your minor children.
- Reduced Disputes:
- Minimize family disagreements by clearly stating your wishes.
- Faster Probate:
- Simplify the probate process, saving time and money for your loved ones.
Conclusion
Dying without a will can lead to delays, disputes, and unintended outcomes for your estate. By creating a will, you ensure your assets are distributed according to your wishes, protect your loved ones, and avoid the uncertainties of intestacy laws.
Take control of your legacy by consulting with an estate planning attorney to draft a comprehensive will that reflects your wishes and safeguards your family’s future.
Contact Modern Business & Estate Planning Law today at 417-200-2500 to secure your future. Modern Law proudly services Joplin Missouri & Springfield Missouri.