Dying Intestate

The previously posted WILL NOT is a tongue in cheek but unfortunately accurate account of what may happen if you die intestate (without a valid will). The following is a more detailed discussion of some of the consequences of failing to legally document your post mortem intentions.

The most important question is who will inherit your property. Without a will, the intestacy laws of the state of residence will provide the answer. While such laws provide an exhaustive list of potential beneficiaries, the statutory recipients may not be your intended beneficiaries. The first beneficiaries in order of priority will be your spouse and children. Generally, the surviving spouse will receive a stated monetary amount (for example $30,000) plus a percentage of the residue (for example one third). Your children will receive the rest.

Our sixteenth President, Abraham Lincoln, from all accounts a fine lawyer, inexplicitly died without a will. Under the applicable intestacy statute, his wife Mary and his 2 sons split the residue of his modest estate. Considering there was no government pension at that time and Congress stopped his salary on the day he died, one wonders if Abe would have preferred Mary to live on his entire estate and not just the portion provided her under the intestacy statute.

Howard Hughes also passed away intestate (a purported will was found to be a forgery). Unlike Lincoln, Hughes died without a surviving spouse or children. Under the intestacy law, his $2.5 billion fortune was divided among his 22 cousins, his closest relatives. One wonders whether Hughes would have wanted such a distribution especially considering his lifetime philanthropy. The administration of Hughes’s estate dragged on for more than 20 years, another consequence that could have been avoided with a valid will.

Some other common consequences of dying intestate are as follows:

A will is the proper document to name a guardian for those under your care. Without naming your successor, you trust a Court to name the right person.

Similarly, without a will, you trust the state legislature to name the proper person to administer your estate.

Finally, without a properly drafted will, you are forfeiting any legal tax savings on behalf of your beneficiaries.

You will find that hiring a lawyer to prepare a will is almost always cost effective. You should be able to find a competent lawyer to prepare a simple will for under $400. If for some reason you choose not to use a lawyer, you should at least take advantage of the many do it your self will kits available on the web.