When you plan for your future, it must not only include your goals and aspirations, but your estate distribution as well. By having this legal piece of document, you help safeguard your assets and protect your family’s well-being. However, if you die without a will, what happens to your assets?
What is intestate succession?
When you die without a valid will or trust, your property goes through a legal process called intestate succession. Under California law, the distribution of your estate will go to your closest family members and relatives. However, the hierarchy of distribution will depend on your marital status.
Unmarried with children
If you were never married but you have adopted or biological children, they will inherit all your assets equally.
Unmarried without children
If you were never married and have no children, but your parents are still alive, they will inherit all your assets. However, if your parents are already deceased, your siblings will be next in line to inherit all your assets equally.
If you were never married and you have no children, parents and siblings, your estate’s inheritance order will continue as follows: your grandparents, your uncles or aunts, your cousins.
Married with children
If you are married and have children, your spouse will inherit your entire community property, plus ⅓ of your separate property. Your children will inherit the remaining ⅔ equally.
Married without children
If you are married without any children but your parents are still alive, your spouse will inherit your entire community property, plus half of your separate property. Your parents will inherit the remaining half.
If you are married without any children and surviving parents, your spouse will inherit your entire community property, plus half of your separate property. Your siblings will inherit the remaining half.
What is community property?
Community property refers to all assets gained during a marriage. However, this does not include any inheritance that you have received before or during your marriage. In California, when you die married, your spouse inherits 50% of your community property without going through probate. In this legal process, the probate court determines how a deceased person’s estate will be divided, with or without a will.
What is separate property?
Separate property refers to all assets gained before marriage, as well as gifts received during your marriage. In California, when you die married, your spouse inherits 50% of your separate property. The remaining 50% will be passed down to your children, parents, siblings and other relatives.
Are there exceptions?
Although most of your estate will go through intestate succession, your other assets will not be subject to it. These include:
- Life insurance proceeds
- Retirement accounts
- Living trusts
- payable-on-death bank accounts
- Any real estate with a transfer on death dead
Since these types of property have designated beneficiaries, they can be transferred to the rightful owners upon your death, even without a will. However, it is important to note that by having a will, you help ensure that both your family and property will be taken care of according to your final wishes.