Planning what happens to your assets after you pass away is an important part of protecting your loved ones. A surprising number of people never get around to creating their wills or finishing their estate plans. When they die, they are said to be “intestate.”
State intestacy laws exist for this reason and can establish which surviving relatives have the right to inherit – and how much they receive. Although intestacy laws can provide a default inheritance plan, dying intestate can create problems for your family and stop your last wishes from being fulfilled. Here’s why:
Misdirected assets
One major advantage of writing a will is deciding who inherits from your estate. Without a valid will, you lose control over who receives your assets after you are gone – no matter what verbal directives you may have given. For example, if you want your gold watch or diamond ring to go to a specific person, you can make that directive in your will. If you don’t have a will, the state decides who gets it.
Family disputes
Family members may not agree with how certain assets are distributed after you pass away. Without a clearly defined legal document explaining your wishes, your relatives may fight over assets or argue about your final wishes. When intestate distributions don’t match up with expectations, family relationships can crumble under the strain.
Probate delays
When a person passes away, the probate process can face many delays and difficulties if there is no will to assign an executor. The additional time involved in appointing an administrator and other issues can delay the transfer of assets and put your loved ones in a financial bind.
Professional legal guidance can draft an estate plan to avoid serious legal complications for family members.