About two out of three Americans will die without a will. This is known as dying intestate.

While the reasons for not having a will vary, the end result is the same for everyone: they do not get to choose who receives their property when they die. Instead, their money and property are distributed according to the laws of their state.

This is not necessarily a bad thing. In most states, a person’s spouse, children, parents, and siblings are given priority in the line of succession. But even if someone is fine with their next of kin receiving all of their money and property, a beneficiary can still be required to go through a long and costly court process when there is no will.

State law can only assume how the typical person would dispose of their estate. When a state’s default intestacy laws do not align with the actual preferences of the decedent about who should get what, this can lead to a number of issues. State intestacy laws vary in detail and can quickly get complicated, especially when a family is blended and does not have a typical structure.  

Nonblood Beneficiaries

Default intestacy laws can leave out not only stepchildren, foster children, and children placed for adoption, but also close family friends, charities, and others not related by blood.

Who Receives the Money and Property—and How Much

Intestacy laws are rigid about who receives how much. Intestate shares are statutorily determined and do not consider special circumstances. Parents commonly divide their money and property equally among their children, but no law requires this, and there are good reasons why some parents do not want equal distributions. State intestacy laws preclude unequal distribution as well as intentional disinheritance of a child.

Other Problems

Intestacy can also give rise to the following additional issues:

• Loved ones are unable to make specific funeral arrangements.
• The court decides who raises minor children.
• Property that the decedent intended to keep in the family could be sold.
• The probate process can be lengthy, and delay how soon loved ones receive money and property.
• Probate costs can drain money and property that otherwise would have gone to heirs.
• Arguments can break out between heirs about what the decedent would have wanted.

Do Not Leave Your Legacy Up to the State

There are many reasons for not making an estate plan. You may think you are too young, do not have enough money and property, or cannot afford estate planning. But a better question might be, can you afford not to have a plan? A basic estate plan can fit your budget and allow you to rest easy knowing your money and property will end up where you want them to go.