Learn what happens if you don’t have a will, how it affects estate distribution, and why creating one ensures your wishes are carried out.

Having a will provides a clear plan for the distribution of your assets, appoints your trusted fiduciaries, and gives you peace of mind, knowing that your estate will be handled according to your wishes. It helps you and your loved ones avoid unnecessary complications, delays, unwanted distributions, and unintended tax consequences. 

When you don’t have a will in Pennsylvania, state laws determine how your assets will be distributed and who will be in charge of the estate administration. Your estate will be handled by an estate administrator appointed by the court based on default rules, as opposed to an executor that you name. This state-appointed person is responsible for identifying your assets and distributing them according to state statutes. 

Determining Beneficiaries

Typically, the beneficiaries of an estate are based on your family relationships. So in many cases, the distribution of assets according to state laws may align with what you would have chosen in your will. However, there are times when this can become problematic, especially if you have specific preferences that differ from the state’s default rules. The order of inheritance is generally the following: 

• Surviving spouse
• Children
  • If you have both a surviving spouse and children, the spouse typically receives the first $30,000 of the estate, and the remainder is divided equally between the spouse and the children. 
• Parents
• Siblings or their children
  • If you have multiple siblings, they must all be notified and given the chance to renounce their claim to the estate. 
• Grandparents
• Uncles, aunts, and their children and grandchildren
• The Commonwealth 

Considerations for Stepchildren or Non-Blood Relatives

If your estate includes stepchildren or non-blood relatives, it’s essential to be explicit in your will as they may not automatically receive a share of your estate. Typically, attorneys include language that defines who is considered a child for the purposes of the will. This ensures there are no questions about who will inherit. Whether a child is biological, adopted, or a stepchild, these distinctions can be made clear, avoiding any ambiguity during the probate process.

Unintended Tax Implications

Without a will, there could be unintended tax consequences for your estate. For instance, if you’re married but hold assets solely in your name, 50% of those assets may go to your children under the state’s laws, creating a taxable event. This could trigger inheritance taxes that would have been avoidable had you included specific provisions in your will to transfer everything to your spouse.

While having a will doesn’t directly reduce taxes, it can expedite the process, allowing your heirs to take advantage of certain tax benefits. For example, Pennsylvania offers a discount on inheritance tax if it’s paid within 90 days of death. A will can help ensure that the necessary steps are taken quickly to minimize the tax burden on your estate and beneficiaries.

Not having a will can complicate the distribution of your estate with extra legal steps. A simple will that names your preferred executor and beneficiaries can streamline the process and ensure your wishes are followed. Instead of relying on the state’s default rules, work with an attorney at Lope Casker to create a will that clearly outlines your intentions and avoids potential issues.