Sometimes people die without leaving a valid Will. This is referred to as being “intestate.” In fact, only about 40% of Americans have bothered to write the most important document they’ll ever write – their Last Will and Testament. However, just about every adult has estate assets that need to pass to their heirs. Even though there’s no legal document to guide the transfer of those estate assets, Alabama law provides a way to settle an intestate estate.
Not All Assets Are Probate Assets.
Some assets pass to named beneficiaries or surviving co-owners, even if no Will exists:
- Anything you own as a joint tenancy or tenancy by the entirety.
- Property transferred to a living trust;
- Proceeds from life insurance policies payable to named beneficiaries;
- Funds in an IRA, 401(k), or other retirement account;
- Securities in a transfer-on-death account; and
- Payable-on-death bank accounts.
Distributing Assets When There’s No Will.
Alabama law provides for the succession of other assets, taking into consideration the marital status of the decedent and whether there are any descendants. By the way, any part of a person’s probate estate that is not addressed by his Will transfers to heirs pursuant to intestate laws.
Succession in a complicated family will be, well, complicated.
| If decedent is survived by: | Then probate assets pass: |
| a spouse, but no children | entirely to spouse |
| a spouse, no children, parent or parents | first $100,000 to spouse, then one-half of the rest |
| a spouse, children of decedent and spouse | first $50,000 to spouse, plus one-half of the balance |
| a spouse, children of decedent but not surviving spouse | one-half of the estate to the spouse |
| children of decedent | in an amount based on degree of kinship to decedent |
| parents, but no spouse or children | equally to the parents |
| no spouse, children, or parents | to other children of parents (siblings) |
| no spouse, children, parents, or siblings | to grandparents or children of grandparents based on degree of kinship. |
If there are no obvious heirs, the estate administrator will conduct an investigation. In cases where they are unable to find any heirs, the probate estate passes to the state.
Probate Without a Will
When there’s no Will, probate is much more difficult and more expensive.
A probate court will appoint a personal representative. This person performs the same duties as an executor, but without the guidance of a Will. At the conclusion of probate, the executor distributes estate assets to the appropriate heirs.
Sounds easy, dying without a Will can set up family feuds that last for generations. Potential heirs may disagree on everything from who should be the administrator to who is actually an heir.
Don’t Wait to Prepare Your Will.
The best solution for your family is to leave a valid Will. Avoid letting a court determine who gets your stuff. Make a Will and keep it up to date.
Schedule a free consultation with the attorneys at Adams & Miller, P.C. Our attorneys know how to help people like you. Just give us a call at 256-251-2137 or use our Contact Form to set up an appointment. Serving clients in the greater Anniston area, including Birmingham, Talladega, and Gadsden.