An estate plan is a crucial legal document that helps manage the distribution and care of a person’s estate after they pass away. One of the most important legal documents that make up an estate plan is a will. A will outlines who should benefit from an estate, including any beneficiaries named by the testator.
Unfortunately, only a fraction of Americans have a will. The remaining people who do not have a will could die intestate. You can read the following to learn about intestatcy and why this could create issues for your loved ones:
Understand the consequences of intestacy
“Intestacy” is a legal term that means that a person died without a will. When a person dies intestate, an administrator is typically appointed by a probate court. The administrator’s duties include collecting assets, paying taxes and debts and distributing assets.
If there is no valid will with a list of beneficiaries, then the administrator may distribute assets to heirs. Under Florida’s intestate succession laws, an heir can include a spouse, child or other surviving family members. The heir that benefits from the estate may include the closest relative to the deceased, often beginning with the surviving spouse. However, how assets are divided may depend on a few factors.
For example, if a person passed away and had a surviving spouse and children from said spouse, then the entire estate goes to that spouse. But, if there were children with another person, then the estate may be split between the surviving spouse and the other children. If a person passes away without a surviving spouse, then assets may be evenly divided among their children.
Intestate is very complicated and can lead to long periods of grief and major expenses for someone’s heirs. Legal guidance can help people avoid intestacy and the problems it brings.