When we think of estate planning, we might think of seniors who are planning how to leave their assets to adult children and grandchildren, or middle aged people who want to be sure there is a plan in place for their kids in case the parents die unexpectedly.
Young singles and couples (married
or not married) are usually the least likely to have an estate plan, such as a
Will. Many young people rent, have relatively few assets, and may think that
they don't need a plan now.
But even if you're just starting out, your earnings will go up during the course of your career, you will acquire more assets, and will someday have a bigger family. Now is the time to protect those assets and protect your family's future.
If you die without a Will
(intestacy), the probate court applies state law as to the priority of heirs in
what is called intestate succession. The court will appoint a personal representative
to administer your estate, without your input. If you have minor children and
die without a Will, the court will appoint a guardian for those children,
again, without any input from you.
Want to leave property to a
friend or a charity? Without a Will, there is no provision for that.
If you are unmarried but have a life partner and want to make sure that person receives
your assets? It cannot be done in cases of intestacy. Instead, your assets will
pass to your heirs based on the priority set by intestate succession.
For example: Brad and Erika are in a serious, loving relationship, but don't have children and are not planning to get married any time soon. They live together and share expenses in the house Brad inherited from his mother. Brad has two siblings he is close to, but his father hasn't been a part of his life since Brad was a baby.
If Brad dies without a Will, Erika would not receive any of Brad's assets. Under Minnesota laws of intestate succession, Brad's entire estate would go to his estranged father. Brad's father would be under no obligation to share his inheritance with Erika or allow her to continue living in the house. Brad's father would have no obligation to share with Brad's siblings, either.
Now suppose that Brad's father is not alive to receive the estate. Brad's two siblings would be next in line and would share the entire estate, 50/50. Erika would still receive nothing, and Brad's siblings would not be obligated to allow Erika to remain in the house.
If Brad and Erika were married, Erika would inherit under the laws of intestacy. But Brad and Erika have made the decision to not get married now, and the law makes no provisions for their choices.
Unfortunately, the laws of intestacy do not take into account who is important in your life and who is not. It is a blunt tool that tries its best to distribute assets to the people most closely related to the decedent.
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