Establishing an estate plan is one way for people to protect their loved ones. Despite the importance of estate planning, many people assume that they have time in which to establish documents. They may procrastinate about estate planning and may die without a will or any other documents in place.
Recent social research indicates that more than two-thirds of adults in the United States do not have a will or any other type of estate plan. Families already dealing with the grief of losing a loved one may also have a challenging estate administration process ahead when there isn’t a will.
What probate complications can potentially arise in scenarios where people do not have a will on record?
1. Likely beneficiaries may be left with nothing
There are certain people who may rationally expect to have protection during estate administration. Long-term romantic partners are a perfect example.
Their shared living arrangements might leave them expecting practical support and a right to inherit certain property. Unfortunately, without a will, those outside of the immediate biological and legal family of the decedent generally lose any right to inherit property from their estate.
2. Estate resources may be vulnerable to probate claims
Individuals with significant financial obligations or valuable property often create estate plans to protect their assets. Without an appropriate plan, assets can be vulnerable to probate claims made by creditors.
The Medicaid estate recovery program could also potentially claim some of the estate’s resources. If the estate is relatively large, then a lack of prior planning might put the estate at risk of being taxed.
3. There could be disagreements about sentimental items
Estate plans often specifically address assets that have emotional or sentimental value for the testator and their loved ones. When the state applies intestate succession rules, the focus is typically on the economic value of assets and ensuring a fair distribution in accordance with the law. Beneficiaries may find themselves fighting with one another over assets that have sentimental value.
The personal representative administering an intestate estate may find themselves facing a very challenging asset distribution process. Learning more about intestate succession statutes can help those who may have to administer such estates.