Death And Beneficiaries: What You Need To Know

When someone passes away, anything they leave behind, known as his or her estate, must be managed. The assets and debts of the individual have to be settled. This is no easy task and often requires the process of probate. Probate is a legal process for those who have a will at death. The court system provides a way for his or her assets to be properly dispersed based on the wishes of the deceased. However, there are some times when there is no will or no beneficiaries listed. Here are some things you need to know:

What If No Beneficiaries Are Listed?

In many cases, a person will create a will and not list anyone as a beneficiary of those assets. The goal of the will is for those left behind to ensure his or her estate is divided according to his or her wishes. Typically, a person will list beneficiaries to receive anything that is left after all debts are paid, if any. Several things can happen that result in no beneficiaries in the will.

For example, when an individual does not update a will to include children or other family members, it is difficult to name those beneficiaries after death. Another example is when a person lists a beneficiary in his or her will but that beneficiary has also passed away and no others are named in the will. Some people simply choose not to list beneficiaries for a variety of reasons. The results of each case are different, but ultimately, the court will determine what happens to the estate when there are no beneficiaries in a will.

What If There Is No Will?

If a person passes away and he or she did not have a will, the outcome of the estate will depend on the state he or she lived in at the time of death. In community property estates, the assets obtained in the course of the marriage will go to his or her spouse. If there is property that is not considered community property and was obtained prior to marriage, the spouse and children will receive a share of the assets.

If the deceased is unmarried or his or her spouse has also passed away, the children will receive the estate. If someone dies and there is no will and no relatives, the estate will go to the state the person lived in.

Contact a local probate law office to learn more.