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What happens if you die without a will?

It’s one of life’s more uncomfortable tasks – deciding who will get  your things after you die.

If  you have a great deal of money, investments or  property it would seem clear that estate planning would be needed to insure the assets are distributed per your wishes. But the recent example of pop icon Prince dying seemingly without having prepared a will,  shows that facing the inevitable is not very pleasant and is often put off.

On Wednesday, a Minnesota judge appointed a corporate trust company to oversee Prince’s estate after his sister ,Tyka Nelson, petitioned the court for help Tuesday. Nelson said she believes her brother died without having  a will. The court action will protect the estimated $300 million estate until  or unless a will surfaces. Bremer Trust, a  company appointed by the court, will act as special administrator for six months or until a personal representative is appointed by the court.

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But what about those  of us with more modest portfolios?  We don’t have vaults full of music worth millions, estates or large holdings. We can trust that our family will equally divide our assets in the way we would have wanted it, right?

In case that thought makes you a bit shaky, here’s a quick guide to what happens if you die without a will. %

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Some terms

First, let’s understand a few legal terms you may see in a will.

Beneficiary – A person who will receive something from an estate or trust

Codicil – A document that amends a will, clarifying or changing some part of it without having to rewrite the entire will

Decedent – The person who has died.

Executor – A person named in a will and appointed by the court to carry out the terms of the will. You can name anyone (or more than one person) you wish to be the executor.

Intestate – This simply means you died without having a valid will

Probate – The process of  proving that a will is valid and that its directions are carried out. A county's probate court supervises this process. If you die intestate, the court supervises the distribution of property using the states intestacy laws.

Will – A document that lays out who will inherit your assets and who will administer that process.

What happens  when you die intestate?

It depends on where you live. Each state is different, but laws of “intestacy” generally determine who your heirs are, and what they get.

As a general  rule in most states, your spouse then your children will inherit your assets. If you have no spouse or children, then your parents are next in line. If your parents are dead, your siblings stand to inherit your estate.

That is the case under Minnesota law, where Prince  lived  and died. Prince had one full sister and several half-siblings. Per Minnesota law, Prince’s half-brothers and sisters would be on equal footing with his full sister, Tyka, because Prince was  unmarried  and, as far as anyone knows, he had only one child who died shortly after being born.

Remember, laws vary by state. For instance, under Tennessee law, when one spouse dies without a will, the surviving spouse is entitled to at least one third of the estate, and the surviving children split the rest. In Texas if you are unmarried and have children, all your property will pass to them, even if you are living with someone.

In Florida, if you are legally married, your spouse inherits all the assets with none going to the children (or descendants).  In Ohio, if you are married and you have a child from a previous relationship and you die without a will, your spouse inherits the first $20,000 of your intestate property, plus one-half of the balance of the estate. The child gets the other half.

In Georgia, a spouse and descendants equally share the intestate property, but the spouse’s share may not be less than one-third.

What if no relatives are to be found?

Then, in most cases, the state gets your assets.

Can I prepare a will myself, or do I have to go to an attorney?

You do not have to hire an attorney to prepare a will. There are many online sites or self-help books and kits that can help you prepare a will. Wills you create are legal and binding,  but, in most states, must be witnessed. You need two witnesses to sign  the will. They do not have to read the will to sign it.

You can, of course, use the services of an attorney to prepare a will. It generally costs between  $300 to 1,000, depending on the complexity of your estate.

What do I do if I want  to write my own?

It can be as easy as going to Google and typing in “online wills. You will see a list of websites that offer will kits, flat forms for you to fill out and other guides to making wills.

Before you begin, though, have in mind these things:

  • How you want your property distributed, meaning things you own (a car, a home, land, a baseball card collection) plus life insurance money, savings and any other income
  • Someone who will be your executor
  • Someone who will be guardians for your minor children
  • How and from what source you want your debts paid
  • A plan to provide for pets

Where do I keep my will

Obviously, keep it in a safe  place where people can find it after you die. The probate court  will need the original. A safe deposit box or filed with your attorney are good choices. If you keep it at home, consider keeping  it in a safe. You may also want to have signed copies kept by someone you trust in the event the original is destroyed. It would at least be something for the probate court to go on.

Can it be contested?

Yes it can. If someone feels slighted by the way you have divided your assets, they can contest it. However, it must be contested on certain grounds – such as it wasn’t witnessed, or you were believed to be incompetent when  you made out the will. A probate judge will handle any disputes.

If you want more information about intestate laws in  your state, click here.