An estate plan allows people to decide what happens to their estate after they pass away. One of the main documents in an estate plan is a will. A legal will allows people to make instructions for the management and distribution of assets. An individual can use a will to name beneficiaries.
Without a legal will, the last wishes of an individual are not known. When someone dies without a legal will, that means they have died intestate. As a result, the execution of an estate is left to the state. Here is what happens next:
How is an estate managed without a legal will?
Typically, an individual can name an executor of the estate in their will. An executor is responsible for settling an estate, including distributing assets to beneficiaries. When someone dies intestate, the state appoints a personal representative for the estate, instead.
This personal representative is responsible for settling an estate. Instead of named beneficiaries gaining from an estate, the executor will distribute any remaining assets to the heirs dictated by the state schedule, which may include a spouse, child, parent or sibling, for example. The end result of the execution of an estate can be costly and may not follow the last wishes of the deceased. This is often not ideal for people who want to help to give their estate to someone specific.
How can you avoid the interstate?
To avoid intestate, it is important to have a valid will. There are several requirements to have a valid will. For instance, a will should have a genuine signature from the individual who drafts the will and a signature from two witnesses who do not benefit from the estate plan. A valid will may also need to follow the state’s unique estate planning laws. Legal guidance can help individuals draft their estate plan to avoid complications.