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Intestacy Laws May Not Provide the Results You’re Looking For
Creating a will is likely the most important step most people will take during estate planning. This simple step can ensure your wishes are honored once you have passed on. Sadly, one of the many consequences of dying without a will in Grand Rapids is that Michigan’s intestacy laws will dictate the administration of your estate. This may not go how you’d prefer.
Intestacy laws take a one-size-fits-all approach to estate administration. Unfortunately, this is never an ideal outcome. Everyone’s situation is different, so it’s impossible for legislators to make decisions that serve the best interests of everyone in these situations. The consequences of dying without a will are usually enough to show the importance of drafting the document.
Effects on Asset Distribution
When someone dies without a will, they never get to see the fallout of their decision. This is a tragic reality – because if they knew the troubles they were leaving behind for their loved ones – they likely would’ve created a will years beforehand. Some of the most significant consequences that occur when a decedent leaves this world without a will involve asset distribution.
Michigan’s intestacy laws prioritize individuals with close relationships to the deceased. If someone has a spouse and no children when they die, their spouse inherits everything. For those with children, the spouse will inherit $150,000 and then 50% of the remaining balance. The rest will go to the children equally. Clearly, this can create issues for smaller estates.
There are many nuances to intestacy laws when someone dies without a will in Grand Rapids, and the complexity of these laws means that it’s typically ideal to work with an estate planning professional. Without a will, there are even situations where the state may take everything you own. While you might get lucky with intestacy laws, this is far from a guaranteed outcome.
Appointment of a Personal Representative
When someone creates a will prior to their death, they get to choose an executor who will ensure that all terms of the document are carried out. This provides an opportunity for you to choose someone who you can trust. Trust is everything in estate planning.
If you die without a will, there’s no precise way to know who will handle the administration of your estate. That’s because the duty of choosing a personal representative will fall to the courts. They’ll often choose a spouse or adult child, but other legal heirs may be selected as well.
The one thing that’s known for certain is the fact that you won’t get to choose who administers your estate. Without a will in place, a situation may even arise where creditors are the ones exercising significant control over your assets. There’s never a situation where this is positive.
Guardianship for Minor Children
Among some of the most devastating consequences of dying without a will in Grand Rapids is what happens to minors. If you have underage children, a will is critical for dictating who you want to have custody of your youngsters after you die.
If you don’t take this vital step, the courts will decide who becomes the legal guardian. Bank accounts, real estate, vehicles, and other assets seem trivial by comparison. If you have minor children, having a will in place is less of a suggestion and more of a necessity.
Even if you have a spouse, this step is still critical. What if something were to happen and you both died at the same time? This is not an uncommon outcome, so it’s important to prepare for all possible contingencies where your children are involved.
Going Through Probate
Many people believe that having a will means their assets will not go through probate. This isn’t typically true. While there are ways to avoid probate (e.g., beneficiary designations), most estates will go through the process. However, dying without a will makes things more complicated – and your wishes will never be known:
- Family member, creditor, or interested party must file a petition for probate
- The courts decide the appropriate type of probate (e.g., formal vs informal vs small estate)
- A personal representative is appointed by the courts
- The personal representative identifies and notifies all heirs and potential beneficiaries
- A notice to creditors is posted, alerting anyone who may want to file claims against your estate
- The personal representative must track down all assets
- Debts and expenses are paid
- Assets distributed by the personal representative based on intestacy laws
- Disputes — which are more likely without a will — must be resolved
- The personal representative files a final accounting and closes the estate
If this process sounds complex, that’s because it is. The consequences of dying without a will in Grand Rapids involve lengthy estate administration processes. Even worse, these processes will unfold with zero input from you. Put simply, you should not be okay with dying without a will.
The Major Consequences of Dying Without a Will
The consequences discussed thus far are clearly significant. While some people may luck out — such as in situations where they had a beneficiary designated on their primary account — not everyone will be as lucky. Unfortunately, there are additional negative consequences that are even worse than the ones mentioned above. They include:
- Family disputes: Intestacy laws may not reflect the decedent’s wishes, or family members may disagree over what they wanted. This can lead to familial conflicts
- Higher costs and delays: A lack of clear directives can complicate probate, and this can make the process drag on for longer and cost more
- No charitable contributions: If you die without a will in Michigan, intestacy laws do not allow donations to charities or non-family members
There’s no denying that the consequences of dying without a will in Grand Rapids are extremely detrimental. However, don’t forget that such outcomes are far from a foregone conclusion. If you still have breath in your lungs, then there’s likely still time to draft a will. The most important task is to make sure you undertake this step correctly, and for many, legal counsel can be beneficial.
Do You Need to Hire an Estate Planning Attorney?
By now, the importance of creating a valid will is hopefully apparent. By taking the step of having this document drafted, you will ensure that your wishes are known and respected after you pass on. However, the key word here is valid. Michigan laws have very strict requirements regarding the validity of wills, and simple mistakes can invalidate these documents.
For instance, state law usually requires wills to be in writing and signed by the testator and at least two witnesses. There are some nuances that allow for non-witnessed wills, but these have very specific rules and increase the odds of the will being disputed. If it’s decided that your will is not valid, it’s as if you never created it. This means the probate court will decide everything.
At Stuart Law, PLC, our dedicated legal team is here to help you avoid the consequences of dying without a will in Grand Rapids. Contact us today at (616) 747-8638 to get started on protecting everything you’ve worked for.