Estate planning may feel like a difficult topic to address, but understanding what happens without a will is crucial. Sadly, it’s more common than you might think — around 67% of Americans don’t have a valid estate plan, leaving state laws, not personal wishes, to dictate how assets are distributed.
Here’s more of what happens in these situations and why having a will can make all the difference.
What Happens If There’s No Will?
When someone dies without a will, their estate is distributed according to “intestate succession” laws, which vary by state but generally prioritize close relatives:
- Appointment of an administrator: Without a will, the court appoints an “administrator” (often a close family member) to handle the estate. The administrator has similar duties to an executor, including paying debts, filing taxes, and distributing assets.
- Distribution of assets:
- Spouse and children: A spouse and children typically receive the majority of the estate, though the exact division depends on state law. For instance, a spouse may inherit everything if there are no children, or the estate might be divided if there are children involved.
- No spouse or children: In these cases, assets usually go to other close relatives, such as parents, siblings, or nieces and nephews.
- Extended family: If no immediate family members exist, distant relatives may inherit assets. In rare cases with no identifiable heirs, the estate reverts to the state (a process called “escheat”).
- Minor children and guardianship: For minor children with no surviving parent, the court assigns a guardian. If a will does not specify a preferred guardian, family members can petition, but the court ultimately decides.
- Taxes and debts: Outstanding debts and taxes are paid from the estate before assets are distributed. State laws typically determine the order of debt payment, with priorities like funeral expenses, taxes, and secured debts.
Potential Complications and Delays
Without a will, the estate may face disputes, challenges, and probate delays, which can reduce the total inheritance for loved ones. Probate court and attorney fees can add up, and family members may experience additional stress without clear instructions.
How State Laws Affect Estate Planning
Each state has unique intestacy laws, so asset distribution without a will can vary significantly. For example, in some states, a surviving spouse may inherit everything; in others, they may only receive a portion, with the remainder going to children or other relatives. Understanding these differences is essential for ensuring your wishes are followed.
