Intestacy
Dying without a valid will or other means of distributing his/her assets is described
as dying "intestate". When this happens, the intestacy laws of the state where that
person resided take over and declare how the decedent's asset will be distributed.
The specific distributions spelled out by the statutes vary from state to state.
Generally, though, most states' laws split the decedent's assets between the spouse,
children and parents. If the decedent has no living spouse, children or parents,
the law will continue to move down the decedent's family to siblings and other relatives.
Under intestacy, the decedent has no control over the distribution. Intestacy distribution
can lead to consequences that the decedent might never have intended. Anyone who
is competent and not a minor will receive their share, including 18 or 19-year-old
children, relatives who may be receiving SSI, Medicaid or other need-based government
aid, or relatives with whom the decedent did not have a positive relationship.
Intestacy is the estate plan of most people, not because they have intentionally
chosen it as the best option for them, but because they have failed to create an
estate plan of their own (with a will or living trust or other documents.) Many
people do not realize that by failing to plan, they actually have a plan... but it may
not be the plan they want.
This Web site is intended for general information purposes only. It does not nor is it intended to constitute legal, tax or investment advice. United Financial Systems, Corporation is not a lawyer, registered investment advisor or investment advisor representative, and is not engaged in the practice of law or the business of investment advice.