When someone passes away, their assets are typically distributed according to their last wishes listed in the deceased person’s will. However, every year, fewer and fewer people draft a will. When someone dies without a will, they can unintentionally create difficulties for their loved ones.
Dying without a valid will is called dying intestate. Here is what can happen if you die without a will:
How intestate impacts your estate
With a will, it is the responsibility of an executor to manage and distribute assets to beneficiaries. When someone dies intestate, it is typically the responsibility of the state to manage the deceased’s estate. Instead of an executor, the state may assign an administrator to manage the deceased’s assets.
Because there is no will, the administrator may distribute assets to heirs instead of beneficiaries. An heir may include the closest surviving family members, including a spouse, children, parents, siblings and extended family.
How assets are divided is based on Indiana’s succession laws. For example, if there is a spouse but no children, the spouse could inherit everything. However, a spouse may receive half the estate if there are children. The remaining half of the estate may be distributed between descendants. As a result, assets may not be distributed according to your last wishes, which could cause family members to fight over assets.
Probate may also be necessary if you die intestate. Probate can delay the grieving process for family members and the distribution of assets. Your estate could also be subject to estate taxes without the right estate planning options.
Professional legal guidance can help you draft your will and prepare your estate plan.