Find The Best Insurance
We make it easy to compare and buy insurance.LEARN MORE
Create an estate plan so state laws don’t determine your heirs.
Intestacy is the state of dying without a valid will
The deceased is said to have “died intestate” or “died in intestacy”
Each state has their own intestate laws that determine who inherits
If you die and you don’t leave a will behind, then the court will deem you to have died in intestacy. This might also happen if the will you wrote was invalid, or all of your beneficiaries predeceased you. When there is no valid will, the probate court will determine who inherits your assets — they will likely be distributed according to state laws of intestate succession.
In this article:
A will is a legal document that dictates how your assets are to be distributed to your chosen beneficiaries. You can name specific valuables to pass onto your heirs when you die and appoint an executor to manage and settle your affairs.
Intestacy is the state of dying without a valid will. If you die without a will in place, you have died intestate. All of your property and belongings now become part of the estate. Usually a will directs the probate process, but in this case the local court will decide how the estate is distributed and appoint an executor called a personal administrator to help do this.
Not all assets become part of the probate estate. Assets with a beneficiary designation are non-probatable, meaning the probate court doesn’t get to determine the heirs. A life insurance policy or payable-on-death (POD) account like an IRA, with a named beneficiary, will pay out outside of probate.
Assets that are jointly owned (joint tenancy) become the surviving owner’s sole property. For example, if you purchased a home with a civil partner, and both of your names are on the deed, the house would automatically pass on to the partner without needing to go through probate.
If you live in a community property state, then your spouse will essentially inherit everything. In these states, if you want to choose a beneficiary other than your spouse, then a will stating this is imperative. Even then, the property must be owned with your spouse as tenants in common, or else he or she may have rights to survivorship.
If you’re not married or don’t live in a community property state, your heirs will be determined based on laws of intestacy. Each state has their own intestate laws regarding who can inherit your assets if you die without a valid will.
There is an order to the potential lawful heirs called intestate succession, by which relatives are categorized into different groups. Generally, closer family members are more entitled to the property than more distant blood relatives. For example, a surviving spouse and child might have greater claim to the assets than brothers and sisters, who may have greater claim over aunts, uncles, and cousins. Check the intestate succession laws in your area for more detail.
As you think about your estate plan, make sure life insurance is a part of it.
Policygenius can help you choose a policy that protects your family and fits your budget.
Distributing an intestate estate can be a lengthy process — it might take years before any of the intestate heirs receive a share of the inheritance from a large and complicated estate. The easiest way to avoid intestacy is to write a will that clearly stipulates who gets what. An estate planning attorney can help you create a valid will that holds up in court and won’t be contested by potential heirs. You can also create a trust, a separate entity, that passes the assets to its own beneficiaries.
Was this article helpful?
Security you can trust
Yes, we have to include some legalese down here. Read it larger on our legal page. Policygenius Inc. (“Policygenius”) is a licensed independent insurance broker. Policygenius does not underwrite any insurance policy described on this website. The information provided on this site has been developed by Policygenius for general informational and educational purposes. We do our best efforts to ensure that this information is up-to-date and accurate. Any insurance policy premium quotes or ranges displayed are non-binding. The final insurance policy premium for any policy is determined by the underwriting insurance company following application. Savings are estimated by comparing the highest and lowest price for a shopper in a given health class. For example: for a 30-year old non-smoker male in South Carolina with excellent health and a preferred plus health class, comparing quotes for a $500,000, 20-year term life policy, the price difference between the lowest and highest quotes is 60%. For that same shopper in New York, the price difference is 40%. Rates are subject to change and are valid as of 2/17/17.
Copyright Policygenius © 2014-2020