someone dies without a will or estate plan, their assets and property are distributed according to the laws of intestacy. Intestacy laws vary from country to country and state to state, but generally, the following steps are taken
Table of Contents
Appointment of an Administrator
In the absence of a will, a court will appoint an administrator to handle the deceased person’s estate. The administrator is usually a close family member or a trusted individual.
Identification and Valuation of Assets
The administrator’s first task is to identify and locate all the assets owned by the deceased. This may include bank accounts, real estate, investments, vehicles, and personal belongings. The assets are then appraised or valued to determine their worth.
Payment of Debts and Taxes
The administrator is responsible for paying off any outstanding debts and taxes owed by the deceased. This may include mortgages, loans, credit card bills, and any unpaid taxes. The debts are typically paid from the estate’s assets.
Distribution of Assets
Once all debts and taxes have been settled, the remaining assets are distributed among the deceased person’s heirs according to the laws of intestacy. The laws generally prioritize the surviving spouse and children, followed by other close relatives if there is no immediate family. The distribution is typically based on a predetermined formula or percentage, which may vary depending on the jurisdiction.
Probate Process
In some cases, the estate may need to go through the probate process, which is a legal procedure to validate the will or determine the rightful heirs. This process can be time-consuming and may involve court hearings and legal fees.
Potential Disputes
Without a will, there is a higher likelihood of disputes among family members or other potential beneficiaries regarding the distribution of assets. This can lead to legal battles and further delays in the settlement of the estate.