What Happens if you Pass On Without a Will

If the worst happens and you die without a will in place you are considered to have died "intestate." When you have a will in place then your estate, which includes your property, possessions, and other personal items, will be distributed according to the will. This is, of course, contingent on your debts being paid off as well as your funeral and burial costs. A will can be challenged in some cases and be made invalid by others, but for the most part, the instructions left in a will are followed. 

When there is no will in place, your property must still be distributed. Here are the rules for which this distribution works: 

• Someone who is financially dependant on the deceased has the opportunity to make the first claim
• After this claim, the first $200,000 goes to the deceased spouse if they decide to make a claim to their entitlement
• The spouse may, instead, claim half of the net family property, depending on the value of the net family property in comparison to $200,000
• Anything remaining after the spouse takes $200,000 or half the net value of the family property is divided between the spouse and all descendants (children, grandchildren, etc.)
• If there is no spouse, then the estate goes to the deceased's children, in the case where one of the deceased's children has died, their share of the estate will transfer to the child's children (grandchildren)
• If the deceased had no spouse, children, or grandchildren, then the estate is inherited by their parents equally
• If the deceased has no spouse, children, grandchildren and their parents are deceased, then the estate goes to their brothers and sisters equally, in the case where the brothers and sisters have died, the estate goes to the deceased nieces and nephews 
• In cases where an estate is inherited by a niece or nephew, if the niece or nephew is deceased, then their share of the estate will not go to their children
• If no direct relatives are alive and there are only distant relatives to inherit property, then the rules become more complex 
• If an heir was alive when the deceased passed away, but died before the estate was distributed, their heirs share their portion of the estate equally
• Lastly, only blood relatives, which does include children born outside of marriage, half-blood relatives, and legally adopted children, can inherit shares in the estate

As you can see, the rules for distributing an estate if the deceased does not have a will can be very complicated. It can also lead to fighting between family members and destroyed relationships. 

While it may seem that death is far off and preparing for it is not a pressing matter, anything can happen at any time. Being reasonably prepared for the worst is always a smart idea, and creating a will is one of the most responsible things you can do to protect your family and legacy. 

The team at The Knee Law Firm, Ltd. can help you establish a legally binding will that can speak for you if the worst were to happen.