Intestate refers to the situation where a person dies without having made a valid will or without having adequately provided for all aspects of their estate through a will. When someone dies intestate, the distribution of their assets is governed by state or provincial intestacy laws, which outline how property and debts will be allocated among surviving relatives. Typically, these laws prioritize spouses, children, and other family members in a hierarchical manner. Intestacy can cause complications and disputes among heirs since the deceased's exact wishes regarding their estate cannot be determined. Understanding how intestate succession works is crucial for nonprofits, especially when discussing bequests or anticipated legacies from an individual who has not left a formal will.
This fact is often misunderstood; while it is true that the estate may eventually escheat to the state if no applicable heirs can be identified, this is a last resort scenario. Most intestate estates are distributed among surviving relatives according to state or provincial laws before any consideration for escheatment.
If a person dies intestate, their assets will be distributed according to the intestacy laws of their state or province. This means that state statutes will dictate the order of beneficiaries, typically prioritizing close relatives such as spouses and children.
Not all assets are necessarily subject to intestate succession. Assets held in joint tenancy, life insurance policies with designated beneficiaries, and retirement accounts can pass directly to the designated individuals, bypassing the intestacy laws.
Yes, nonprofits can potentially receive bequests from intestate estates if the deceased has surviving relatives who may choose to donate part of the estate to charity. However, the lack of a will can complicate matters and may lead to disputes among heirs.