Intestacy is the state of being defined by dying and not having an estate plan in place. Dying intestate will cause state or local laws to dictate what happens with a deceased person’s assets and property.

If a person dies without a will, the state will oversee the distribution of their estate according to state law. This includes settling debts, paying for final rites, and distributing the remainder of the estate to legal beneficiaries. This can result in assets that the deceased may have wanted to pass on being liquidated to pay down outstanding fees or debts.

Under most state laws there are only three categories of persons eligible to be beneficiaries of an intestate estate: spouses, children, and direct relatives. The state will only award assets to these three groups, in the event that there are no blood relations, children, or spouses, the state will assume ownership of the estate. Notably, intestacy excludes live-in partners, friends, or organizations from receiving any portion of the estate.

Are there any limitations or exceptions to the rules of intestacy?

Because intestacy assumes a default to state laws, the only exceptions or limitations of the process are those implemented by each state. By and large, if someone dies intestate, the beneficiaries excluded by state law are out of luck. This is why it is imperative to have an estate plan in place as early as possible and for it to be kept up to date.

What are the potential complications or disadvantages of dying intestate?

If someone dies intestate there are virtually no advantages. Unless the deceased exclusively intended to randomly leave their assets to exclusively close family or spouses, it is always better to have an estate plan. Without an estate plan, the state will decide what assets are distributed to beneficiaries and what assets are liquidated to pay down debts or fees. Furthermore, assets will be distributed according to state law, not according to the wishes of the deceased.

Because intestacy assumes a default to state laws, the only exceptions or limitations of the process are those implemented by each state. By and large, if someone dies intestate, the beneficiaries excluded by state law are out of luck. This is why it is imperative to have an estate plan in place as early as possible and for it to be kept up to date.

If someone dies intestate there are virtually no advantages. Unless the deceased exclusively intended to randomly leave their assets to exclusively close family or spouses, it is always better to have an estate plan. Without an estate plan, the state will decide what assets are distributed to beneficiaries and what assets are liquidated to pay down debts or fees. Furthermore, assets will be distributed according to state law, not according to the wishes of the deceased.