If you are thinking about setting up an estate plan, it is vital to make sure that you carefully go over all options and figure out the best course of action. Whether you want to set up a trust or you determine that a will suits your individual circumstances better, you could have various strategies to consider.
A number of concerns can arise when people die without an estate plan in place, known as intestacy.
Looking at intestacy, distributees and inheritance
According to the New York State Unified Court System, those who die without a last will and testament have died intestate, which means that the state divides their assets in accordance with relevant laws. Sometimes, this results in the undesirable distribution of property, which highlights the importance of people outlining what should happen to their assets following their death.
The court refers to family members who receive assets from a loved one who died without an estate plan as “distributees”. Intestacy can leave an unmarried partner with nothing, while one’s spouse can receive all of their assets if the couple did not have children.
Other concerns with regard to intestacy
Aside from the distribution of assets, intestacy raises other worries. For example, concerns arise with the guardianship of minor children whose parents have lost their lives. Moreover, intestacy can lead to tax-related complications.
In some instances, people think they do not need an estate plan because they are too young. However, unexpected accidents happen far too often. Moreover, some younger adults also need to help their parents understand the importance of having an estate plan in place. Make sure you do not push off important estate-related decisions for too long.