|
|
Estate Planning Introduction | Estate Planning Problems | Factual Estate Data |
Absence of Valid Will | Charitable Remainder Trust | Glossary | Request Information
Absence of a Valid Will: Intestacy 
Intestate describes the situation that exists when a person dies without a valid will. Some intestacy laws "draw the will the decedent failed to make" to determine the disposition of the probate property of persons who have died intestate. These statues enumerate certain preferred classes of survivors.
Generally, the decedent's spouse is favored, followed by the children and then other descendants. If the spouse and children or other descendants such as grandchildren or great grandchildren survive, they will divide the estate and other relatives or charitable organizations will receive nothing. If no spouse, children, or other descendants survive, the deceased's parents, brothers, and sisters will receive a share of the estate.
The disposition of a typical intestate estate can be illustrated with a simple example. Assume an individual died with no valid will. That individual's separately owned property would be distributed as shown in the exhibit below after deductions of debts, taxes, and state family exemptions. If the deceased left no wife or husband, child or descendant, parent, brother or sister or descendant, grandparent, or uncle or aunt of their children, the state normally would take all of the property. Had the deceased even in this situation had a will, the property could have been directed to some non-related individual or to a charity.
Aside from having lost control of the disposition of property to individuals or charities, the person who died intestate has also forfeited the privilege of naming a personal representative to guide the disposition of the estate, naming a guardian for persons and property, and specifying which beneficiaries would bear certain tax burdens. In addition with a valid will the amount of estate shrinkage can be minimized through the use of certain deductions and exclusions that may not be available when a person dies intestate. The importance of a valid will -- regardless of the size of an estate must not be overlooked in the personal financial planning process.
Distribution of Typical Intestate Estate
If an individual dies intestate -- without a valid will -- the estate will be distributed according to pre-established state statues or guidelines.
| Decedent Dies Leaving |
Spouse Distribution |
Child/children Distribution |
| Spouse and children or their descendents |
Spouse received one third |
Children receive two-thirds divided equally |
|
|
|
| Spouse and one child or child descendents |
Spouse receives one half |
Child receives one half |
|
|
|
| Spouse but no children or their descendants, and decedent's mother father survives |
Spouse receives a specific amount plus one half of balance |
Father and mother or surviving parent (If one is already deceased) receive one-half of balance |
|
|
|
| Spouse but no children or their descendants, and no parent survives |
Spouse receives a specific amount plus one half of balance |
Brothers and sisters receive one half of balance divided equally |
|
|
|
| Spouse but no children or their descendants and no parent, brother, sister, niece, nephew, grandparent uncle or aunt survives |
Spouse Receives all |
|
|
|
|
| Child or children but no spouse |
|
Child or children receive all divided equally |
|
|
|
| No spouse and no children or their descendants, and decedent's mother or father survives |
|
Mother and father receive all |
|
|
|
| No spouse and no children or their descendants survives |
|
Brothers and sisters receive all divided equally |
|
|
|
|
CHRISTCO INVESTMENTS & ASSOCIATES
P. O. BOX 218056 | HOUSTON, TX 77218-8056
Local Phone 281) 493-4089
Toll Free 866-863-4835
Fax (281) 493-9838 |
|
| |
This web site may contain concepts that have legal, accounting and tax implications. It is not intended to provide legal, accounting or tax advice. You may wish to consult a competent attorney, tax advisor, or accountant. |
|
 |