The Risks of Relying on Intestacy
Many people are under the impression that if they die without a will (dying intestate), everything they own will automatically pass to their spouse and children. State rules differ on this, but generally, your spouse will inherit a percentage of what you own. However, the court could split your assets in ways you might not expect or intend. For example, stepchildren you helped raise (but did not legally adopt) may end up with nothing, while a spouse that you’ve separated from (but have not yet divorced) inherits everything. For this and many other reasons, we strongly recommend that you do not rely solely on intestacy as your estate plan.
Let’s Take a Look at a Real-Life Example
Lisa and Patrick are happily married. Lisa has one daughter from a previous marriage named Natalie, and Patrick has one son from an earlier marriage named Josh. Both of them live full-time with Lisa and Patrick. Together, Lisa and Patrick have a daughter named Lily. All three children are treated the same and loved very much by Lisa and Patrick. Unfortunately, Patrick passes away without any estate planning. All of his wealth and assets go to his wife (Lisa) and his two biological children (Josh and Lily). Natalie received nothing, which would not have been Patrick’s intention as he loved her like his own daughter. Simple estate planning could have ensured he had complete control over who received an inheritance from him and how much.
The Power of a Valid Will
Another issue with relying on intestacy is that no transfers to your loved ones happen automatically. Instead, the family has to open a probate estate with the court, which is time-consuming and expensive. Further, it is public, so an inventory of your assets and details of family life are accessible to anyone. In addition to inheritance issues, if parents of minor children pass away without an estate plan, the court will appoint a legal guardian. Unfortunately, the court’s decision may not align with the parents’ wishes. The good news is that a valid will allows parents to express their preferred guardians.
Don’t Rely on Intestacy—Guard Your Legacy
If you and your spouse are separated when you die, state law decides what will happen to your assets. In some states, even if you’re separated, you’re still considered legally married, and your spouse will receive a percentage of your property upon your death. In some circumstances, they may even inherit all of it. Additionally, in some states, even if you file for divorce, your former spouse could receive what you left behind unless the divorce is final. Of course, a prenuptial or postnuptial agreement can prevent this. However, the best way to truly safeguard what you have worked so hard to build is to talk to one of our qualified estate planning attorneys. We can help protect your family and secure your legacy. Contact us today.