You don't have an estate plan right now.
Maybe you have thought about it, and the fact you are here reading this article suggests that you are at least giving it some consideration. Thinking about what will happen to your assets after you die is not an easy subject to delve into, and not easy to discuss with family.
Yet my question stands. What would happen if you died tomorrow?
It's a heady question. Some people are content to not have a Will. To not deal with it. To simply let the chips fall where they may. They may believe that the courts will work it out, or that their descendants will "do the right thing." Let's look at how those two possibilities may play out.
Will the courts work it out?
If you don't have a valid Will, that is just what will happen--the courts will work it out. Without your input. If you die intestate, your estate will need to be probated, which is to say that the court will call the shots in settling your estate. The probate court will appoint a personal representative to manage the process. The court-appointed PR may be a family member, maybe not. If minor children are involved, the court will appoint conservators to manage their inheritances, and may appoint a guardian to protect the persons themselves.
Those appointed persons may or may not be people you wished to serve. The court will apply Minnesota's laws of intestacy in determining the distribution of your assets. How this goes may or may not be what you had wanted.
The Minnesota intestacy laws were designed by legislators to make the best attempt at being fair and equitable. A fail-safe, if you will. But essentially blunt tools. As you can see, not having a valid Will throws a lot of "may or may nots" into the equation. Without a valid Will, you won't be able to provide guidance.
Will your children do the right thing?
As a parent, you may believe that your kids will make the right choices, will be fair, and will get along. But losing a loved one is stressful, and grief can cloud one's vision. Children can--and often do--act much differently after the death of a parent. They all have a legal and financial interest in your estate. And stress is a big influencer. Competition and quarreling are more common than you might think, even among otherwise well-behaved siblings. Without your wise guidance, they can be drawn to infighting, perhaps leading to drawn-out court battles. Again, you won't be able to provide guidance.
If you don't have a plan for your estate, all of that is left on the table for the court to sort out.