Like almost half of all Americans, you may not have even a basic estate plan in place despite friends and family members urging you to create one. You may even acknowledge, in a vague way, that you understand how important it is to have an estate plan. The reason you have yet to get started on that plan, however, may be that you do not truly understand the possible repercussion of dying without a plan in place. To help remedy that, and hopefully encourage you to get started on a plan, the Long Island attorneys at Eghrari Law Firm explain what happens to your assets if you die intestate in New York.
What Does It Mean to Die “Intestate?”
The estate left behind when someone dies with a Last Will and Testament in place is referred to as a “testate” estate. If, however, an individual fails to leave behind a Will (or a trust) the estate left behind is referred to as an “intestate” estate in legal terminology. To avoid dying intestate, every adult should execute a Will, at a bare minimum. Ideally, you will eventually create a more elaborate estate plan; however, your original Will can serve as the foundation of that plan as it expands with the growth or your family and your estate.
New York Intestate Succession Rules
To avoid giving the State of New York the ability to create an estate plan for you, you need to create your own estate plan, starting with the execution of a Last Will and Testament. If you do pass away and leave behind an intestate, the New York state intestate succession rules will dictate who inherits your estate assets and what percentage of your estate each of those heirs inherits. The New York intestate succession laws will distribute your estate as follows, depending on who survives you:
- Spouse but no descendants: Your spouse inherits everything.
- Children but no spouse: Your children inherit everything.
- Spouse and children: Your spouse inherits the first $50,000 plus half of the balance and your children (or their descendants) inherit everything else. New York law includes the following rules about “children” for purposes of determining the right to inherit from an estate:
- Adopted children will inherit just like a biological child.
- Foster children and stepchildren will not inherit unless they were legally adopted.
- Children born after the Decedent dies will inherit.
- Children born outside of marriage, also called non-marital child, will inherit from a male Decedent if paternity is established
- Grandchildren will inherit only if their parent (the Decedent’s child) dies before the Decedent died.
- Parents but no spouse or children: Parents inherit everything.
- Siblings but no spouse, descendants, or parents: Your siblings inherit all assets.
How Are Assets Divided in an Intestate Estate?
You may be fine with the overall structure of the New York intestate succession rules; however, you should also consider how your assets will be divided among heirs. Problems may still arise if your estate includes assets that cannot be easily divided or if disputes arise over who gets which assets. For example, imagine that you have three children, and you leave behind a house valued at $700,000. One child might want to actually live in the house while the other two just want their share of the equity in the property. On a smaller scale, you might own family heirlooms or collectibles that all three children are hoping to inherit when you pass away. Without a Will in place, there is no way to know what your wishes were. You also lost the ability to decide who will oversee the administration of your estate by dying intestate, meaning someone not of your choosing will be forced to try and resolve disputes. Ultimately, the only way to ensure that your wishes are honored is to avoid leaving behind an intestate estate in New York.
Can We Help You Avoid Leaving Behind an Intestate Estate in New York?
For more information, please join us for a FREE estate planning seminar. To ensure that you do not leave behind an intestate estate in New York, contact the Long Island estate planning attorneys at Eghrari Law Firm by calling us at 631-265-0599 to schedule your appointment.
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