Tag Archives: dying without a will

Dying Intestate Ohio

Married with no children
If there are no children or lineal descendants, the entire estate goes to the spouse.
Married with child or children
If there is a spouse and one child or its lineal descendants surviving, the spouse get the first $60,000 if he or she is the natural or adoptive parent of the child, or the first $20,000 if he or she is not the natural or adoptive parent. In addition, the spouse gets one half of the balance of the estate. The remainder goes to the child or lineal descendants. If there is more than one child or their lineal descendants surviving, and if the spouse is the natural or adoptive parent of at least one of the children, he or she receives the first $60,000 plus one third of the balance of the estate. If the spouse is not the natural or adoptive parent of any of the children, the amount is $20,000 plus one third of the balance of the estate. In both cases, the remainder of the estate goes to the children or the lineal descendants of any deceased child.
Order of estate distribution if no spouse survives or person is single:
1) children or their lineal descendants
2) parents of the deceased
3) siblings or their lineal descendants
4) grandparents
5) lineal descendants of the deceased grandparents (i.e. aunts, uncles, cousins)
6) other next of kin
7) stepchildren or their lineal descendants
No surviving relatives
The estate goes to the state of Ohio
State link
http://tinyurl.com/cmduzm

Dying Intestate Illinois

Married with no children
The entire estate goes to the surviving spouse.
Married with child or children
One half of the entire estate goes to the spouse and the other half to the decedent’s descendants.
No spouse survives but there are other relatives
The estate will be distributed in this order of priority:

1) decedent’s descendants

2) parent, brother, sister or descendant of the decedent or of brother or sister

3) grandparent or descendant of a grandparent – one half of the estate to the decedent’s maternal grandparents or their descendants and the other half to the decedent’s paternal grandparents or their descendants

4) great grandparents or their descendants – one half of the estate to the decedent’s paternal side and the other half to the decedent’s maternal side

5) the nearest kin of the decedent

Single person/ widow or widower
The estate will be distributed in the order shown below:
Order of estate distribution if decedent not married
The estate will be distributed in this order of priority:

1) decedent’s descendants

2) parent, brother, sister or descendant of the decedent or of brother or sister

3) grandparent or descendant of a grandparent – one half of the estate to the decedent’s maternal grandparents or their descendants and the other half to the decedent’s paternal grandparents or their descendants

4) great grandparents or their descendants – one half of the estate to the decedent’s paternal side and the other half to the decedent’s maternal side

5) the nearest kin of the decedent

No surviving relatives
The real estate reverts to the county in which it is located; all other personal property becomes the property of the county in which the decedent was a resident or becomes the property of the state of Illinois and should be delivered to the State Treasurer.
State link
http://tinyurl.com/cy8cjy

Dying Without a Will

WHAT IF YOU DON’T HAVE A WILL OR A LIVING TRUST?

If you die without having created a will or a trust, you are considered to have died intestate.  In this situation, the state has a created a default will for you.  The default will determines who the state appoints to manage your affairs after you die and the default will determines who will inherit your probate assets.

Upon your death the following will occur if you die without a will:

  • A family member will inventory the assets of the deceased and list what the decedent owned and what the decedent owes.
  • The inventory will include a list of all property with a title.  Based upon the method of title, the person taking the inventory will place the assets in either the automatic inheritance bucket, the trust bucket, or the probate bucket.
    • Property with automatic inheritance rights will automatically be transferred to the named beneficiaries.
    • Trust assets will be managed by the designated successor trustee.
    • The remaining probate property will be distributed according to the applicable state law of intestacy.  These are laws which describe who inherits your probate property when you fail to leave a will.
      • Under most state laws of intestacy, the probate assets are divided among a surviving spouse and children of the decedent.  However, if there is no surviving spouse and no surviving children, then the intestate assets are distributed to next of kin.  In most states, stepchildren have no right to inherit.  If there are no surviving relatives, the entire probate estate may go to the state.
  • The inventory will also include a list of all property without a title, i.e., your jewelry, your furniture, cash, art, and your digital assets.  The estate representative will determine how to distribute the personal property to your beneficiaries.
  • An estate representative, sometimes called an administrator or a personal representative, will be appointed by the court to administer your intestate probate estate.  Most state laws contain a preference that a surviving spouse, and then surviving children, be appointed to serve as the administrator of the intestate estate.
  • The estate representative will decide if probate is required and whether the estate needs to follow procedures for a small estate, a surviving spouse, or a normal probate process.
  • The court appointed estate representative has the same responsibility as someone you appoint as an executor in your will or the successor trustee in your living trust, except that they are not guided by a will or a trust; their actions are governed by state laws only.  ibutton: State Intestate Succession Statutes

Plan For Death

"Just a little bit of planning made my live so much better."

"Just a little bit of planning made my life so much better."

FACE THE FACTS!

Dying is not just an emotional event in our life, it is a major financial event as well.  Consider the following possible financial consequences of your death:

  • The paperwork and legal procedures required to settle your estate can cost your family four to eight percent of your net worth.
  • If probate is required, your family’s inheritance can be delayed for months, and in some cases, several years.  During the probate process, the courts decide when your family can sell your personal residence.  Even though your children can’t afford to pay the mortgage.
  • Contract law may override the instructions in your Will or Living Trust
  • Giving your share of your estate directly to your spouse may cost your family hundreds of thousands of dollars.
  • If you or your surviving spouse die without a will, most state intestate laws do not provide for stepchildren.
  • Naming a minor child as a beneficiary can subject the supervision of their money to the probate court.  For a fee.
  • Giving money directly to a minor child with special needs can make the child ineligible for government benefits.
  • Your business may go out of business because no one know how to access digital records.
  • The beneficiary choice of per capita or per stirpes may accidentally disinherit a grandchild
  • Your choice of a beneficiary for your 401(k) or IRA retirement accounts can dramatically change the after death tax deferred value of these accounts.
  • If you don’t have long term care insurance, you must use your assets to pay for long term care.  There may be no assets when you die.
  • Life insurance proceeds may be part of your taxable estate.  If your estate is subject to the federal estate tax, almost half of the life insurance proceeds may be needed to pay the estate tax on the insurance proceeds.

ESTATE PLANNING

When someone dies, a series of laws and rules determine who has the legal authority to manage the decedent’s financial affairs.

These rules and documents also determine your beneficiaries and the cost, time and effort it will take to settle your estate when you die.  Planning now will save your family money later.

These resources are useful when making plans to keep your money when you die: