Dispensations depend on presence of spouse, children, other family.
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I have not made a will yet and am curious about what happens to my assets if I die without one.
If you die without a will, your assets will be distributed according to the laws of your state, known as intestacy laws. These determine who inherits your property and financial accounts when there is no will or trust. The assets are usually transferred through probate, the legal process that distributes a deceased person’s assets. Since intestacy rules vary from state to state, it is important to check the laws of the state where you live.
There are online tools available that can help determine how your estate might be distributed based on your household information. Search for keywords such as “intestacy evaluators.” Additionally, there are resources available that offer a useful state-by-state intestate succession guide.
In the meantime, here is a general overview of what can happen, depending on your family situation. Of course, these, can vary so it is always recommended to seek legal guidance.
Married with children: When a married person with children dies without a will, all property, investments and financial accounts that are “jointly owned” automatically pass to the surviving co-owner without going through probate. However, for all other separately owned property or individual financial accounts, the laws of most states award one-third to one-half of these assets to the surviving spouse, while the rest goes to the children.
Married with no children: Some states award the entire estate to the surviving spouse, or everything up to a certain amount. But many other states award only one-third to one-half of the decedent’s separately owned assets to the surviving spouse, with the remainder generally going to the deceased person’s parents, or if the parents are deceased to brothers and sisters.
Single with children: Generally, state laws will provide that the entire estate goes to the children in equal shares. If an adult child of the decedent has died, that child’s children (the decedent’s grandchildren) split their parent’s share.
Single with no children or grandchildren: In this situation, most state laws favor the deceased person’s parents. If both parents are deceased, many states divide the property among the brothers and sisters or, if they are not living, their children (your nieces and nephews). If there are none of these, it goes to the next of kin. If there is no living family, the estate passes to the state.
Make a Will To ensure your assets are distributed according to your wishes, creating a will or trust is essential. If you have a simple estate and an uncomplicated family situation, there are do-it-yourself resources that can help you create these documents for very little money.
If, however, you want or need assistance or have a complicated financial situation, a blended family or considerable assets, you should hire an attorney. An experienced attorney can ensure you cover all your bases, which can help avoid family confusion and arguments after you are gone. Costs will vary depending on where you live.
The National Academy of Elder Law Attorneys and American College of Trust and Estate Counsel websites are great resources that have directories to help find someone in your area. You also have the option to check with your state’s bar association (findlegalhelp.org) to find local low-cost legal help. Another option is to call the Eldercare Locator at 800-677-1116 for a referral.
“Savvy Living” is written by Jim Miller, a regular contributor to NBC’s “Today Show.” The column, and others like it, is available to read via The American Legion’s Fund Development program, a way of establishing your legacy of support for the organization while providing for your current financial needs. Consider naming The American Legion in your will or trust as a part of your personal legacy. Learn more about the process, and the variety of charitable programs you can benefit, at legion.org/plannedgiving. Clicking on “Learn more” will bring up an “E-newsletter” button, where you can sign up for regular information.
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