When someone passes away, one of the first questions that may be asked is whether or not they died intestate. This can define how their estate is addressed and may have a major impact on their heirs and beneficiaries.
Essentially, it is often best for people to draft an estate plan and write a will, giving instructions to the estate executor regarding what they want to happen to their assets. If they fail to do this, then it is known as dying intestate. They do not have an estate plan, so state law will determine what happens to their possessions.
Why can this be a problem?
One reason this can be a problem is that state law may not accurately address what the person would have wanted. Say they intended for the bulk of their estate to go to one of their adult children, but not to another. State law may simply dictate that both children must split the assets evenly.
Another issue is that passing away without an estate plan can increase the likelihood of disputes. State law may not specify which family heirlooms should go to which specific beneficiary. Adult children may find themselves arguing over how their parents would have wanted things to be divided, perhaps referencing conversations they had or promises that were made. But without any documentation, it is difficult to prove what the deceased truly wanted.
These are all reasons why it can be beneficial to draft an estate plan. Be sure you know what legal steps to take to do so if you have not written a will already.
