What Happens When Someone Dies Without an Estate Plan?

If someone passes away without a will, or an adequate estate plan, it is known as dying intestate. Intestate succession is the term used to determine how the deceased person’s property is distributed after death. If someone dies without an adequate estate plan their estate will go through the process of probate unless the total estate is worth less than $166,250. Probate is a long court process where the Judge assigns an executor to review the estate ,and along with the probate attorney and Judge, they decide how each item is classified and passed. The executor and the probate attorney are paid a percentage of the value of the estate by law. (California Probate Code section 10810)

In California, there is no such thing as an oral will, meaning, regardless of what someone instructed their loved ones to do with their belongings, if their estate is over the amount of $166,250, a Judge will decide where their belongings are distributed per statutes. As far as children and pets go, the Court appoints the appropriate guardian. It may not be the guardian the deceased person would have wanted.

With regard to property, it is passed on in a variety of ways depending on the surviving family. California is a community property state, and as such, any money earned or property purchased during the marriage belongs equally to each partner. Separate property remains separate. Community property is transferred to the spouse at death. Separate property does not automatically transfer to the spouse at death.

Below are visual representations of where property will go without an estate plan. For example, when a single person dies, their property will go to their issue (children or lineal decedents) and issue of their issue; if there are none, then to the person’s parents; if none, then to their siblings, and so on.

There are multiple ways in which a married person’s separate property is split, as seen in the graphics above. Depending on the amount of children, the shares change. The lists above are not exhaustive, in fact, there are several additional considerations before the separate property is given to the State.

If a person dies and there are no heirs, the entirety of their property is given to (escheats to) the State of California.

Probate is public, tedious, and can be expensive. It is an unnecessary expense. Creating an estate plan is a small price to pay compared to the many thousands of dollars that can land in the hands of someone unintended or worse, to the State.

If you have any questions about intestate succession, probate, whether an estate plan is adequate, to learn about different estate plans, or to create a customized estate plan, contact me!