Note that I use the term valid will, since the state can deem a will as invalid for specific reasons.
If you have no valid will, the state can appoint a family member to administer your estate. If no family member is willing or able to take on that obligation then the state will appoint an administrator for your estate (also known as a personal representative)
If you have not made a valid will, the person in charge of the estate is called the executor or personal representative.
When a person dies intestate – dies with no will – a family member may apply to the courts to act as the estate administrator (personal representative).
Your estate will also pay the fees for the court appointed person who is assigned to administer your estate.
Depending on the size of the state and the complexity of the tasks (for example attempting to locate heirs) the fees can be considerable. The fees are often regulated by the state.
Rules of Intestacy: If a person dies with no valid Will and if the court appoints someone to administer the estate, then the rules of intestacy will apply. These 'rules' are known commonly as intestate succession laws.
The rules of intestacy determines who will inherit your assets. In other words, who has the right to inherit and in what order.
The Rules of Intestacy will vary from one state to another.
Intestate Succession Laws:
The laws govern who will inherit and in what order.
In general, spouses, blood relatives and registered domestic partners can inherit.
Your friends, the people you live with, and charities cannot inherit under intestate succession laws of states.
(Remember, this is when a person dies without a will.)
Note: If you are still married, then the surviving spouse will usually receive the largest share of the estate, even in the event where you are living separately.
Note: The state where a person resides (and not necessarily the state where they died) determines which state rules will be followed. For example, a person resides in Colorado but died while on vacation in Florida, the rules of Colorado prevail.
If you have a trust but no valid will (or your will was deemed invalid), then the assets of the trust will not be part of the intestate rules.
If you reside in a community property state, there are other considerations for inherited property for those who die without a valid will.
If you have a life insurance policy with a named beneficiary, the rules of intestate succession do not apply to that asset. For example, you die without a will but your life insurance policy has your friend as a beneficiary, then your friend could receive the proceeds of the life insurance policy.
However, if you friend predeceases you, then the situation becomes more complicated.
If you have a retirement account with a named beneficiary, the rules of intestate do no apply, but there can be exceptions to this.
There are certain other assets and circumstances when a named beneficiary or other person would be entitled to the proceeds of the asset, for example when two names appear on a property deed.
Final Points: It is important to have a valid will. The rules of intestate succession can be complex. The financial and emotional impact to your loved ones if you die without having a will can be substantial.
It is beyond the scope of this article to address all the possible issues surrounding intestate succession laws. Consult with a legal professional for answers to specific questions.
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