When an estate has a Last Will and Testament or a Revocable Living Trust
, that document will determine which heirs inherit which assets. If there is no Will or Living Trust, an estate is considered intestate. In this case, state laws will decide the rightful heirs.
Executor Named
When you create a Will, you have the chance to name a person to act as your estate executor. You must take time to evaluate the skills of each of your family members and decide who is the most reliable and responsible.
In an Intestate Estate an executor or personal representative is dictated by state law. The law will focus first on relatives close to you such as your spouse or grown children. If your spouse is not available and your children are not adults, another blood relative such as your parents or a sibling may be chosen to act as executor. The court process of choosing an executor can sometimes get messy. Family members may not agree on the decision and therefore may challenge executor choices and prolong the estate settlement process.
Heirs Determined
If you have not created a Will to name your beneficiaries, your heirs will also be determined by law. Heirs-at-law are almost always your spouse or blood relatives. Live-in partners and step-children may not be included. If you have a loved one that you are not married to and not related to by blood, the only way to guarantee an inheritance for that person is to make a Will or Living Trust.
Estate Settled
There are a number of problems that intestacy estates face. First, probate may be prolonged in order to allow time to choose an executor and your heirs. Probate or the process of settling an estate is often more streamlined when a Will lays out your wishes.
Because an estate without a Will may take longer to settle, there may be more costs involved. This could include additional legal fees and costs for extended time in court