Most people have no idea how dying intestate (without a will) will impact their loved ones. They are also unaware of the probate process or how assets such as life insurance pass when a person dies.
Understanding the problems
Most people want to know how to easily transfer or distribute assets such as bank accounts, real estate or insurance policies when someone dies and how to avoid problems that often arise.
Examples include:
- What happens when a spouse dies versus a domestic partner?
- How does your estate plan impact the distribution of your assets?
- Which states recognize domestic partnerships?
- What is the difference between separate property and community property?
- How do intestate succession laws impact your estate plan?
Today, in “What Happens When Someone Dies Without a Will?”, you will learn:
What is intestacy?
Why is having an estate plan so important?
How long does it take to get your money?
What are the requirements of an executor?
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What happens if there is no will?
The probate court will appoint an administrator to oversee the distribution of assets.
Assets pass according to state law.
A typical distribution is as follows:
- Spouse
- Children
- Parents
- Other relatives
When can I get my money?
Various factors determine how long it will take to get your money.
Examples include the following:
- Complexity
- Disputes or litigation
- Valuation
- Legal requirements
Some states are quicker than others.
Effective communication, meticulous planning, and proactive management can expedite the administration timeline.
The Estate Administrator
What is their role?
An estate administrator plays a pivotal role in the posthumous management of a deceased person’s assets and affairs.
Their primary responsibility is to distribute assets by state law. This encompasses a range of tasks, such as:
- Asset identification
- Debt settlement
- Tax obligations
- Distribution of assets
Requirements
You must check your residence state law to determine who can be an administrator.
Examples of skills that make the process easier include:
- Knowledge of estate laws, probate procedures, and administrative responsibilities.
- Ability to pay attention to the details to manage complex situations.
- Effective communication skills to interact with all parties.
- Understanding valuation, investment strategies, tax implications, and financial planning considerations relevant to estate management.
- Always acting in the best interests of the estate.
While credentials are important, 
so are other factors.
Examples include:
- Practical experience
- Access to other experts
- Adherence to ethical principles
These factors are important when selecting an estate administrator.
By combining expertise, diligence, and integrity, administrators can navigate the complexities of estate administration while fulfilling their duties competently and professionally.
How are Administrators Appointed?**
**The appointment of an administrator typically occurs within a few months of a person’s death.
Administrators are appointed when the executor cannot serve, or there isn’t a will. In such instances, interested parties or family members can petition the probate court to appoint an administrator. The court then evaluates the person’s ability to serve.
They also issue letters of administration, granting them legal authority to act on behalf of the estate.
Required Duties
The duties encompass a broad spectrum of responsibilities to efficiently manage the deceased’s affairs.
These duties are:
1. Locating the deceased’s assets.
Examples include:
- Real estate (commercial and residential)
- Bank accounts (including checking, savings, and money market accounts and CDs)
- Investments (stocks, bonds, ETFs, mutual funds, REITs)
- Personal property
- Business interests
2. Notifying creditors
The goal of this step is to safeguard and manage assets. Examples include:
- Property maintenance and taxes
- Investment management
- Insurance coverage
3. Distribution of assets by will or state law
This includes filing legal documents with the probate court.
Examples include:
- Inventory reports
- Accounting
- Final distribution
Personal Liability
Administrators generally do not have personal liability.
However, they can be held accountable if they breach their duties.
The benchmark includes:
- Acting in good faith
- Making decisions that are within the scope of their authority
- Following the law
Administrators must exercise prudence, diligence, and transparency throughout the administration process to mitigate the risk of personal liability.
Can an Administrator Be Fired?
Removal can occur when an administrator
- Fails to fulfill their duties
- Engages in misconduct
- Is unfit to continue serving
Interested parties may petition the probate court to remove the administrator. Those parties include beneficiaries and creditors.
Transparency, accountability, and adherence to legal standards are essential for administrators to maintain their position and credibility.
Additional Tips
- Create an estate plan.
- Update your plan, including your trust, will, directives, and power of attorney.
- Confirm your trustee and executor are willing to serve.
- Meet with your team of advisors when you have a change in your life.
- Remain calm, as this process can be stressful.
- Plan more time than you believe a task will take. Intestacy typically takes about a year, but it can take much longer.
- Find a support group or therapist to help you with the process
- Maintain communication with spouse and family members
Intestacy laws can be complicated, so always check with a qualified attorney.
Recap – “What Happens When Someone Dies Without a Will?”
Dying without a will can be a nightmare for your loved ones. For this reason, you must create and update your estate plan.
A qualified financial advisor and attorney can help make the process easier. They can also ensure you follow the law, so you don’t get into trouble.
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