Many people avoid preparing a Will because they think, “If I die without a Will, my spouse will get everything anyway, right?” This is a misconception can lead to unexpected – and likely, expensive – consequences. Dying without a Will triggers what is known as “Intestate Succession.” When you die intestate, the disposition of most of your property is controlled by the Pennsylvania Law of Intestate Succession set forth in 20 Pa.C.S.A. § 2101 et seq. Simply stated, if you have not prepared a Will dictating where you want your property to go after your death, then the Commonwealth of Pennsylvania has already decided for you.
The statute lays out a pecking order of who receives your property based upon their relationship with you. A few possible scenarios include:
• If the deceased has no surviving children, grandchildren (otherwise known as “issue”) or parents, then the surviving spouse gets everything.
• If there is a surviving spouse and issue who are issue of both surviving spouse and the deceased (same parents), then the surviving spouse gets the first $30,000, and one-half of the remaining assets. The other one-half is divided between the issue.
• If there is a surviving spouse and issue, but at least one of the issue is not issue of the surviving spouse (not the same parents), then the surviving spouse gets one-half and the other one-half goes to the issue.
• If there is a surviving spouse, no issue, and the deceased’s mother or father survives, then the surviving spouse gets the first $30,000, and one-half of the remaining assets. The other one-half is divided between the surviving parents.
This does not apply to property which has a beneficiary designation, in which case how the property is titled controls where the it goes. For example, if you have a life insurance policy or a retirement plan, then the beneficiaries that you designated control where the property goes. If you have a joint bank account, then the other titled owner will receive it. If you own your house with your spouse as tenants by the entirety, then the deed controls the disposition of that property. A life insurance policy and a retirement plan with beneficiary designations will pass directly to those beneficiary designations.
As people’s circumstances often change, simply updating your Will does not conclude the job of estate planning; beneficiary clauses and title to assets need to be reviewed and possibly changed to ensure a disposition of your property as you intend.
Please give yourself some piece of mind and have a Will properly prepared and executed so that your wishes and desires are memorialized, and your property goes where you want it to go.
Mike Frisbie provides individuals and businesses with top level legal services for their everyday situations and problems. Together, they plan and prepare solutions with a litigator’s eye toward avoiding litigation. He takes pride and pleasure in helping people and businesses solve their problems.
This article is designed for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.