Many people have taken steps to provide for their loved ones for when they are no longer here. Whether they set up a will or a trust, they have taken estate planning steps to make sure that issues are addressed to ensure the payment of expenses and the smooth transfer of assets to their relatives. But many people decide they don’t want to do any estate planning. Some would rather not be bothered, while others don’t want to incur the cost associated. There are even those who don’t want to think about the issue, finding it morbid. But unless you have had the assistance of an experienced Pennsylvania estate planning attorney, you could be creating issues for your loved ones.
What happens if someone dies without a will or trust?
When a person dies without a will or trust, the law calls this dying intestate. Like most states, Pennsylvania has an intestate succession law. While a will allows a person to decide how his or her assets will be distributed upon death, the laws of intestacy provide a succession list as a matter of law. Similarly, trusts allow a person to avoid probate while designating his or her beneficiaries, who are similar to heirs under a will and will receive their share of the trust assets upon the death of the trust’s grantor.
How is intestate succession handled?
The Pennsylvania intestate succession law provides that if a person is survived by a spouse, then the spouse will receive the entire estate. If there are any children as well, then the spouse will receive the first $30,000, as well as half of the estate, with the remainder going to the children on a pro rata basis. This means that they each get an equal share, so if the person has two children, they will each get 50% of the remainder. In situations where the surviving spouse is not the parent of the surviving children, then the spouse will get half the estate, and the children will get the other half. If the person has children but no spouse, then the children will receive the entire estate, which they will share equally.
In situations where the deceased has neither a spouse nor any children, then the entire estate will go to any surviving parents of such a person. If the parents are no longer alive, then the entire estate will be divided between his or her siblings. Where there are no surviving spouse, children, parents, or siblings, the estate of the person will go to any surviving grandparents, uncles, aunts, first cousins, and grandchildren. Anyone who doesn’t have these relatives and dies without a will, will have their assets escheat. This means that the funds will all go to the Commonwealth of Pennsylvania.
What assets are excluded from an intestacy?
Not all assets of the deceased are included in an estate if a person dies without a will. If such a person has retirement accounts, life insurance policies, trust assets, and certain real estate, these will be outside of probate. Instead, in the case of retirement accounts, life insurance policies, and trust assets, these funds will pass to whoever has been designated as a beneficiary by the deceased. As for real estate, if it was held as a tenancy by the entirety with a spouse, then the spouse will inherit the property. In the case of a joint tenancy with right of survivorship, any surviving people on the deed will inherit the deceased’s interest in the real property.
What has to be done if a person dies intestate?
When a person dies intestate, the attorney for the proposed administrator will have to file a petition with the Register of Wills, together with a copy of a death certificate. This attorney will seek a grant of Letters of Administration from the probate court. This will give the proposed administrator the authority to work on behalf of the estate of the deceased person, paying off any expenses and liabilities, and distributing the net assets of such person according to the Pennsylvania intestate succession law.
Contact an Estate Planning Attorney Today
As you can see, dying without a trust or will can create a great many headaches for your loved ones. It can also end up with your assets going to people other than those you intended. The experienced estate planning attorneys at Jones Gregg Creehan & Gerace can provide you with the guidance you need to decide on the will or trust that will work best for you, and make sure that your loved ones are provided for when you are gone.