Many people die intestate. This means that when they pass away, they do not have a legal will on file. They haven’t left comprehensive instructions for their beneficiaries or chosen an estate executor. While many people intend to write a will eventually, statistics show that the majority of Americans haven’t done so. Many people die intestate when their passing is unexpected – such as in a car accident.
So what happens if you don’t have a will? State law takes over. It will determine who should receive a portion of your assets. Essentially, you are giving control of your estate to the government. There isn’t much flexibility, and you don’t get to make these decisions yourself. Assets will still pass to the next generation, but it may not be done in the way you would have wanted.
Confusion and estate disputes
From your family’s perspective, dying intestate could also be problematic. It may leave them with significant confusion. For example, a beneficiary may claim they should inherit your art collection, but without a will, state law will divide your assets – including the art collection – under a predetermined formula.
This can often lead to estate disputes. When it comes to family heirlooms, beneficiaries won’t know what you would have wanted, so they’ll have to make an educated guess. This can lead to disputes when two people both want the same asset and both claim you would have wanted them to have it.
By writing a will and giving clear instructions, you can prevent this costly dispute from occurring in the first place. This is just one reason why it’s so important to understand your legal options for estate planning.