A will is an important document for a person’s legacy. This document allows people to instruct how their assets should be managed after they pass away. Unfortunately, a large number of Americans do not have a will. Some of those that do have a will may not have valid documents. As a result, many people die “intestate.”
Intestate means that a person has passed away without creating a legally valid will. If a person dies intestate, their last wishes for how their estate should be managed may not be met. Intestacy can leave behind a complicated legacy for family members, causing both unnecessary grief and expense. Here is what you should know:
Who ends up in charge when someone dies intestate?
If a person creates a will, they can name an executor of the estate. An executor is the person who is responsible for settling the estate. The steps to settle an estate often include locating assets, collecting death certificates, paying taxes and debts and distributing remaining assets to beneficiaries. The beneficiaries of the estate can also be named by the testator (person creating the will).
When someone dies intestate, the state has to appoint a personal representative to handle the deceased’s final affairs. Often, that’s a close family member — but it may also be a professional that the court chooses, instead. The personal representative will then administer the estate according to the state’s rule of succession, which means — after the deceased’s debts are paid — everything else is divided amongst the heirs according to a prefixed plan or schedule set by law. That may not remotely resemble what the deceased actually wanted.
How can you avoid dying intestate?
Intestacy can lead to difficulties for those you leave behind. The best thing for everybody is to make sure that you have a valid will. Legal guidance can put you on the right path to an estate plan that fully meets your needs — and the needs of those you love.