Intestate succession, also known as the law of intestate succession or the law of intestacy, is the order in which a deceased person’s assets are distributed when they die without a valid will or estate plan. In other words, intestate succession is what happens when a person dies “intestate”, or without having a plan in place for the distribution of their assets upon their death.
In the absence of a will or valid estate plan, the assets of a deceased person are distributed in a predefined order based on state law. Generally, priority is given to the spouse, followed by children, then parents, siblings, and relatives in distant or more remote ties to the decedent. If no relatives can be located, the remaining assets are distributed to the state.
Key Considerations of Intestate Succession
Every state has its own laws governing intestate succession. Most states, however, follow similar principles, so understanding the basics of one state can help with understanding how the process works in other states.
In addition to state laws, there are a few key factors to consider when it comes to intestate succession. First, the deceased must have owned assets in the state (or other states) in their name, in order for the assets to be passed on through intestate succession. Additionally, the claims of the decedent’s creditors must be taken into consideration when distributing assets, as creditors typically must be paid back before assets are transferred to heirs.
Common Misconceptions of Intestate Succession
A common misconception about intestate succession is that it will always lead to a fair distribution of assets. This is not always the case as there can be instances where the deceased’s wishes do not align with the laws of the state. Additionally, the heir distribution may not always be easy to determine, as there may be a complex network of relatives competing for the heir distribution.
It’s important to remember that if a person dies without a will, their property is held in trust until it is dispersed by the courts in accordance with the state’s laws. To avoid this process and ensure that their assets are distributed according to their wishes, it is important for people to create a valid will and estate plan.