When someone passes away without an estate plan, their assets are subject to the probate court’s distribution process. An estate comprises both real and personal property owned by the deceased at the time of their death. Without a will, intestacy laws come into effect, dictating how certain property is distributed. Unfortunately, this may result in property going to individuals the deceased might not have chosen as beneficiaries.
Who Receives Your Assets In This Situation?
In the absence of a living will, the estate administrator, appointed by the probate court, oversees the distribution of assets. This administrator’s actions are guided by the Intestate Succession Act, which defines the order of family members entitled to receive the assets.
North Carolina’s Intestate Succession Act:
- Surviving Spouse:
- When the deceased individual has no children and a surviving spouse, the spouse inherits all the probate assets that they would normally inherit under a will.
- Surviving Spouse and One Child (or Child’s Descendants):
- The spouse receives the first $60,000 of personal property and assets, splitting the remaining balance equally with the child or child’s lineal descendant.
- Surviving Spouse and Two or More Children (or Descendants):
- The spouse gets the first $60,000 worth of personal property and one-third of the remaining balance, while the remaining personal property is divided among the deceased person’s children.
- Surviving Parents:
- When the deceased has no spouse, children, or lineal descendants but has surviving parents, the estate is divided equally between the parents. If only one parent survives, they receive the entire estate.
- No Surviving Close Family:
- If the deceased individual has no surviving spouse, children, parents, or close relatives, the estate will be distributed among siblings, their lineal descendants, or other distant relatives.
- Others Entitled to Inherit:
- In some cases, distant relatives, grandparents, aunts, uncles, and other individuals may inherit through intestacy if there are no surviving close family members.
Creating an Estate Plan: Taking Control of Your Property
Dying without an estate plan means that the state will decide how your property is distributed under intestacy laws. This could lead to your assets going to distant relatives or even individuals you do not know. Many people would prefer to choose the recipients of their assets, such as a preferred family member, a university, or a meaningful charity, rather than letting the state make that decision.
Moreover, if probate courts cannot identify qualifying relatives, your estate may end up as unclaimed property seized by the state of North Carolina. The best way to prevent this is by creating a comprehensive estate plan, which allows you to maintain control over the distribution of your hard-earned assets.
How Can CaMu Living Trust Benefit You?
At CaMu Living Trust, we understand the importance of estate planning and the complexities of North Carolina’s laws. Our dedicated team, led by Dr. Rafeek Mikhail, C.E.O. & Founder, and Mrs. Mary Mikhail, C.F.O. & V.P., is committed to guiding individuals and families in estate planning matters. We offer expertise and support to ensure that your assets are distributed according to your wishes.
By working with CaMu Living Trust, you can avoid the uncertainty of intestacy and take proactive steps to secure your family’s financial future. Our experienced estate law attorneys can help you create a tailored estate plan that reflects your desires and ensures that your assets are protected and passed on as you intend.
Final Words
Creating an estate plan is the key to taking control of your property’s destiny. By outlining your wishes in a will or trust, you can ensure that your assets are distributed as you see fit, avoiding the default provisions of intestacy laws. Don’t leave your financial legacy to chance – choose to protect your family’s future with a well-crafted estate plan.
