the price of dying intestate
There are many costs to dying without a will. Let’s look at some examples.
The Spouse May Not Get EnoughSuppose a man has a wife and two minor children. If he were to die without a will, he would probably be shocked to learn that, in many states, his wife would only receive one-third of his probate property. The other two-thirds would go to the children under the intestacy laws.
No Consideration of Special NeedsSuppose a widow leaves two children—one healthy and one with a physical handicap. A will could recognize the greater needs of the handicapped child, but the intestacy laws will treat the children equally.
No Distribution of Specific Assets to Specific RecipientsAunt Sheila would like a valuable necklace to go to her favorite niece. She can accomplish this in a will, but the intestacy laws would not recognize Aunt Sheila's intentions for specific assets.
The Court Will Appoint an AdministratorA person who executes a will has the opportunity to nominate an executor. In the absence of a will, the court will appoint an administrator who may or may not be someone the decedent would have named.
The Estate May Shrink through Fees and Loss of ValueIntestacy can make estate administration more difficult, and that could translate into higher fees for the administrator of the estate and higher legal fees. The administrator will have the minimum powers granted by law, not the broader powers that could be extended by will. So, the administrator generally has less flexibility in dealing with estate assets, and this may result in a loss of value or the sale of estate assets at a liquidation price.
Without Heirs, the State Keeps the AssetsIf the decedent leaves no heirs, as defined by the intestacy statutes, the decedent's assets (after payment of debts and expenses) pass ("escheat") to the state. The states allow a grace period for heirs to "turn up" and challenge the escheat. However, by not executing a will, the decedent lost the opportunity to make a bequest of estate assets to a charity, friend or other beneficiary.
No Consideration of Special NeedsSuppose a widow leaves two children—one healthy and one with a physical handicap. A will could recognize the greater needs of the handicapped child, but the intestacy laws will treat the children equally.
No Distribution of Specific Assets to Specific RecipientsAunt Sheila would like a valuable necklace to go to her favorite niece. She can accomplish this in a will, but the intestacy laws would not recognize Aunt Sheila's intentions for specific assets.
The Court Will Appoint an AdministratorA person who executes a will has the opportunity to nominate an executor. In the absence of a will, the court will appoint an administrator who may or may not be someone the decedent would have named.
The Estate May Shrink through Fees and Loss of ValueIntestacy can make estate administration more difficult, and that could translate into higher fees for the administrator of the estate and higher legal fees. The administrator will have the minimum powers granted by law, not the broader powers that could be extended by will. So, the administrator generally has less flexibility in dealing with estate assets, and this may result in a loss of value or the sale of estate assets at a liquidation price.
Without Heirs, the State Keeps the AssetsIf the decedent leaves no heirs, as defined by the intestacy statutes, the decedent's assets (after payment of debts and expenses) pass ("escheat") to the state. The states allow a grace period for heirs to "turn up" and challenge the escheat. However, by not executing a will, the decedent lost the opportunity to make a bequest of estate assets to a charity, friend or other beneficiary.
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