How Does The State Manage Your Assets When There’s No Will?

A surprising number of young people with and without children have no Last Will and Testament. The consequences of foregoing this essential document are often misunderstood.

You want to avoid dying intestate, which means passing away without a Will or Trust in place. Each state in the US has its own intestacy laws, which dictate how the state—not you—decides how to distribute your property.

While intestacy laws differ by state, the most considerable variation is based on your family status. Did you have children? Were you married? Were you married more than once? These questions all factor into the equation. If the court can find no surviving relatives upon your death, all your belongings become the state’s property.

Here are the consequences of having no Will or Trust, depending on your circumstances:

Married with Kids

If your children are the offspring of your current marriage, the surviving spouse will receive 100% of your estate. If your children are the product of a previous spouse or partner, your estate would be divided differently. More specifically, the surviving spouse would receive a portion of your estate, and the children from another parent would receive a portion. If you have multiple children from different partners, it gets more complicated, and the laws could vary by state.

Married with No Kids

In this case, the property would be distributed differently depending up property ownership. If your property is titled jointly with your spouse, those assets would go to your spouse. If the marital property is titled only in your name and you’re the one who passed (i.e., the decedent), these assets would be subject to probate proceedings and ultimately distributed to the surviving spouse.

Single with Kids

If you have children but are unmarried or divorced, the assets listed under your name will be divided equally among your children. If you have an adult child who passed away and grandchildren who are that child’s offspring, the decedent’s share will be divided among the surviving grandchildren.

Single with No Kids

If you are unmarried without children, one or both of your living parents will receive the entirety of your estate. If both parents are deceased, your living siblings will divide your entire estate. If you have no siblings, nieces, nephews, or surviving parents, your estate would be divided among your late mother and father’s relatives.

Domestic Partners or Unmarried Couple

Estate laws regarding domestic partnerships vary widely from state to state. It’s best to consult your local laws and a Will and trust attorney. If you are living with your romantic partner but unmarried, your relationship is not recognized by intestacy laws. None of your estate would go to your partner, but would be distributed among your relatives.

The Importance of a Will or Trust

Setting up a Last Will and Testament with a top attorney who focuses on estate planning can help you maintain control over your assets. It also preserves your family’s financial future, safeguarding them from hardship due to a lack of planning. For more information on Wills, trusts, and other aspects of estate planning, call Donnellon, Donnellon & Miller at 513.891.7087. You can also schedule an appointment using our online contact form.