Many adults know the importance of having an estate plan, but that doesn’t mean that they make one right away. If you haven’t created an estate plan yet, you need to understand what may happen if you die without one.
Dying without an estate plan is known as dying intestate. In Indiana, this triggers a process that’s set by the state’s intestacy laws. These laws are determined by your family situation at the time of your death.
Who will receive your assets?
If you’re married with children, your estate is typically split between your spouse and children. Indiana law gives the surviving spouse one-half of the estate if you have children, and the children share the remaining half. If those children are from a previous relationship, your spouse’s share may shrink even further.
If you’re married without children, your spouse doesn’t necessarily get everything. Your parents and siblings may still receive a portion, depending on who survives you.
Unmarried individuals without children usually have their assets go to their parents or siblings. If none of those relatives are alive, the state continues down the family tree—looking for nieces, nephews, aunts, uncles and even cousins. In rare cases where no legal heirs can be found, the estate may “escheat,” or revert to the state of Indiana.
Do intestate laws cover all assets?
What’s not covered under intestate succession includes assets with named beneficiaries, like life insurance policies, retirement accounts and jointly owned property. Those pass directly to the named party and don’t go through probate.
Without a will or estate plan, your legacy is left in the hands of the state’s default rules. That’s why it’s worth considering a plan that reflects your actual relationships, values and intentions. Working with someone familiar with this process may reduce the stress you feel while creating your estate.