Having an estate plan ensures that a person’s assets will be distributed as he or she wishes among their beneficiaries after they pass away. A good estate plan also helps guide who will take care of their minor children.  When an estate plan hasn’t been written and established, how that person’s estate is transferred is left up to the state, and the future of the person’s heirs suddenly becomes unclear.

Dying without a will is known as intestate succession, and there are state laws that decide what happens to your assets if you pass away without a will.

3 quick examples of what can happen if you pass away without an estate plan are:

  1. The state determines who gets your property (and who doesn’t). Most people don’t realize that if they are married when they die intestate that their spouse might not inherit the deceased’s entire estate. If you were married with children, your estate will be divided between your surviving spouse and children based on formulas stated in the North Carolina General Statutes. If you are married and don’t have children at the time of your death, but you have surviving parents, your spouse and parents will divide your estate, again based North Carolina General Statute formulas.  For single people with no children, the estate is handed over to your surviving parents.
  2. Your life partner won’t have any legal standing. When a person dies without an estate plan, state laws typically favor spouses and blood relatives. If you have a domestic partner to whom you are not married, he or she will not only be excluded from receiving any of your assets but will also may zero say in how your estate will be distributed or administered.
  3. The state decides who takes care of the kids. Estate plans are important for families because they protect minor-age children after the parents are gone. If a parent passes and the other parent isn’t around, the court can appoint a guardian. While the judge will try to act in the best interests of the children, it doesn’t mean that an unsituable guardian won’t be chosen, making the future of your kids that much uncertain.

 

It’s never too late to start planning and arranging your assets to ensure your family and loved ones are taken care of after you die. For more information about estate planning, contact us today.