Intestacy

Intestacy laws are each state's predetermined formula for distributing a deceased person's assets when no valid will exists. The formula typically prioritizes a surviving spouse, then children, then more distant relatives. While that order may seem reasonable on the surface, the specific shares the law assigns may differ substantially from what the deceased would have chosen.

For families with significant assets, the consequences can be severe. A hypothetical entrepreneur who never updated her estate plan might have her estate split in proportions she never intended, perhaps leaving a business interest jointly among a spouse and adult children from a prior relationship, creating immediate governance conflict. Unmarried partners, close friends, and favored charities receive nothing under intestacy laws regardless of the deceased's intentions.

Intestacy also intersects with guardianship: if minor children survive, the court appoints a guardian according to its own assessment rather than a parent's stated preference. Even families who have a will must ensure it remains valid and up to date; a will executed in one state may face questions if the family later relocates. A common confusion is assuming intestacy only affects people without assets. In reality, the larger the estate, the more disruptive the state's default plan can be. An estate attorney should review any family's documents regularly. See also pour-over will and probate.