For those considering the fate of their assets should death occur with no will having been written, the following may serve as an initial set of rules. It is of vital importance to understand the procedures for estate distribution when no beneficiaries have been named by the deceased.
Dying without having drawn a will is known as dying “intestate”, and when this occurs, the probate court in that particular state will almost always appoint an administrator to oversee outstanding monetary claims against the deceased. These claims include those pertaining to bank accounts, credit card companies, promissory notes, and other unpaid balances. Depending on the state involved, it may also include home mortgages. The key point is that the government of the state of residence determines the beneficiaries when no will has been made.
After distributing assets of the deceased to cover the claimants listed above, the remainder is divided among surviving family members. The order in which this is accomplished varies from state to state; it is suggested that those with concerns ask an estate lawyer for details. Generally it depends on whether the deceased was single or married. If single, the first named beneficiaries are usually surviving children, followed by grandchildren, great grandchildren, and finally the parents, siblings, and grandparents, in that order. If the deceased was married, inheritance rights are a little more complex, as states have differing laws concerning community property. A surviving spouse inherits community property in full, and other assets are usually distributed equally among spouse and children, if any.
If a person dies without having made a will, and their assets do not cover all claim amounts as determined by the court administrator, these costs may or may not be passed on to the surviving family members, depending on the nature of the debt and the laws of a particular state. In most cases, monetary debts such as unpaid credit balances are inherited by surviving family. Again, it is of utmost importance to remember that the state government will make these decisions if no will has been presented.
A person controls the distribution of assets by drawing up a will. It can be done using various formats that indicate the wishes of the deceased. A simple will names the beneficiaries of all assets including, if desired, the recognition of a certain family member or friend to oversee the inheritance distribution. Texas laws regarding this subject are somewhat complex. An Austin living will attorney can fully explain the benefits of drawing a will, based on personal wishes and state regulations. The advice of an estate planning attorney, Austin-based or otherwise, is invaluable in this situation.