The death of a parent is an emotionally devastating and stressful time. Financial strains and uncertainties only compound this stress.

Imagine two potential scenarios.

Meghan is the only child of her wealthy parents. At age 40, the death of one of her 60-year-old parents was not even on her radar. Her father recently died suddenly of a massive heart attack, leaving Meghan and her mother heartbroken and unsure of their financial status. Meghan’s mother, Marie, deferred to her husband, Harry, for all financial decisions. Harry did not have a Last Will and testament. What is Meghan entitled to as a child whose parent has died without a will?

Jessie is also an only child. Both of his parents recently died in a car accident while traveling overseas. Months after their deaths, he is working on putting their affairs in order. He meets with their attorney to ask questions about his inheritance as the child of parents who did not have a will.

Having a will allows parents to express their wishes for dividing their property and possessions after their death. It also helps prevent disputes between beneficiaries, as it clearly defines what each beneficiary should receive.

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What is intestate succession?

To die without having a will or trust in place is called “intestate.” Each state has laws that determine how a deceased person’s estate will be distributed if they die intestate. The deceased person’s property passes to family members following the laws in the state where the deceased person lived at the time of their death.

The probate court in the state where the deceased person lived will have authority over how their property will be distributed. Intestate succession laws identify and prioritize heirs so the deceased person’s property can be distributed in a fair, legal, and organized manner.

Is intestate succession used to distribute all of a deceased person’s property and accounts?

No, some of the deceased person’s assets will not pass through the probate court, even if they do not have a will.

Some examples of assets that are not governed by intestate succession include the following:

• Any property or other assets held in a living trust or an irrevocable trust
• Life insurance policies with a named beneficiary
• Payable-on-death (POD) bank accounts
• Retirement accounts with a named beneficiary
• Securities held in a transfer-on-death account
• Vehicles in which there is a transfer on death registration
• Real estate owned as tenants in common or in joint tenancy with the right of survivorship can be passed to another person through a title or deed.

Even without a will, an account owner can name a designated beneficiary for their accounts. It is also a good idea to name secondary beneficiaries.

How does state law determine who will inherit when a person dies without a will?

Generally, heirs are grouped together into classes, and the class determines who is next in line to inherit property.

California

According to California state law, the surviving spouse inherits one-half of the property belonging to the decedent. Separate property is property you owned before marriage. Community property is property you acquire after getting married. There are exceptions to this general rule. For example, gifts and inheritances are considered separate property, no matter when they were acquired.

Contact the office of San Diego estate planning attorney Gabriel Katzner today to learn more about proper estate planning and how it can benefit you and your family. Don’t leave your estate to chance; ensure your loved ones are protected.

California intestate law stipulates the following:

• If you have a spouse and no children, the spouse inherits everything.
• If you have children and no spouse, the children inherit everything.
• If you have a spouse and 1 child, the spouse inherits all of your community property and one-half of your separate property, and your child inherits the other half of your separate property.
• If you have a spouse and 2 or more children, the spouse inherits all of your community property and one-third of your separate property, and the children inherit two-thirds of your separate property.

If Meghan’s parents lived in California, her mother would likely inherit all of their community property and half of Harry’s separate property, and Meghan would inherit the other half. There are many caveats to intestate law. An estate attorney can help Meghan and her mother through the process.

If Jessie’s parents lived in California, he would probably inherit their entire estate.

New York

According to New York state law, a deceased person’s property and assets are distributed according to the intestate succession laws if there is no will.

New York intestate law stipulates the following:

• If you have a spouse but no descendants, the spouse inherits everything.
• If you have children but no spouse, the children inherit everything.
• If you have a spouse and children, your spouse inherits the first $50,000 of your intestate property and half of everything else, and the children inherit the other half.

If Meghan’s parents lived in New York, her mother would inherit the first $50,000 of Harry’s intestate property and half of everything else, and Meghan would inherit the other half.

If Jessie’s parents lived in New York, he would inherit all the intestate property.

Estate Planning

The best way to ensure that your property and assets are passed on to your beneficiaries is to create an estate plan.

There is no one-size-fits-all guide to estate planning. If you are interested in discussing your estate plan options, schedule a call with us at 855.631.3457 to learn more about how to protect those most important to you.