What Happens if You Die Without a Will?

Have you heard about the “Great Wealth Transfer?” It’s predicted that over the next couple of decades, $84 trillion will pass from the Baby Boomer generation to Gen X and millennials. This is an opportunity to build generational wealth that will provide financial security for years to come. Unfortunately, approximately 67% of American adults don’t have any estate plan. So, what will happen to all that money when they die?

California’s Intestate Succession Laws

First and foremost, California is a community property state. If you die without a will and are survived by your spouse, they will get 100% of the marital assets. In addition, California recognizes registered domestic partners who have the same inheritance rights as a spouse.

Separate assets acquired before the marriage or an inheritance are treated differently. The intestate succession laws break down as follows if you have:

• A spouse, no children, parents are deceased, and no siblings: Spouse inherits everything.
• A spouse and one child: The assets are split evenly between the two
• A spouse and more than one child: The spouse receives ⅓ of the separate property, and ⅔ is divided evenly among the children
• A spouse and parents of the deceased: The Spouse gets half, and the parents receive the other half. If the parents are no longer living, any siblings of the deceased will receive the other half to be divided evenly.

If you don’t have a spouse, everything will go to your children. If you don’t have any children, the line of succession will go through all living residents until the closest one is found, who will inherit everything.

This process can become costly and time-consuming. Furthermore, any verbal bequests you may have made while living won’t be recognized by the court after you die.

Beyond Asset Distribution

A will covers much more than who will receive your estate when you die. It encompasses several critical aspects of your personal and financial affairs, such as:

Appoint a Guardian for Minor Children

One of the most significant roles of a will is the ability to appoint a guardian for your minor children. You can designate someone you trust to take care of your children in the event of your untimely passing. You can ensure they are raised in a stable environment. If you don’t have a will, the court can decide upon guardianship for your children, which may be a person that doesn’t share your values.

Specify Funeral Arrangements

In your will, you can outline your wishes regarding funeral and burial arrangements. By specifying your final wishes, you relieve your loved ones of the burden of making these decisions during an emotional time.

Appoint an Executor

An executor is the person who oversees the handling of your estate. Their duties include petitioning the court to open probate, paying your debts and final expenses, and ensuring your beneficiaries receive their inheritance per your wishes. You can name a trusted individual as executor in your will and help ensure your estate is handled honestly and efficiently.

Minimize Family Disputes

Family arguments over inheritance can lead to long-lasting conflicts that may never fully resolve. Your will can help minimize misunderstandings and disputes among family members by clearly outlining how you want your assets distributed.

Finding Peace of Mind with LPEP Law

Ultimately, a will provides you and your loved ones peace of mind. Our lawyers at Lonich Patton Ehrlich Policastri have extensive experience in estate planning and can work with you to create a will that’s tailored to your specific needs. We will ensure your estate is handled according to your wishes. If your wishes change, we can help you with that as well.

Contact us for a free consultation by calling (408) 553-0801.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.