
Planning for the inevitable may seem daunting, but without proper preparation, your loved ones could face unnecessary legal complications after you pass away. In California, dying without an estate plan can create confusion and delays for your family during an already difficult time. Here’s what you need to know about what happens if you die without an estate plan in place.
When you die without an estate plan in California, you are allowing your state legislature to create one for you. I don't know about you, but the last people I want to have control over my property and who it will go to after I die is the California State Legislature. Basically, the "Laws of Intestate Succession" will govern where your property goes.
Your Estate May Require a Probate
When someone dies without an estate plan in California, their estate typically goes through a legal process called probate. Probate is required in California when the gross probate estate is above $184,500.00. If you own a house, it will need a court procedure also. The value of the home determines whether it will go through probate or a small estate procedure. When calculating the gross value of your estate to see if it exceeds $184,500.00, the law does not deduct liabilities or mortgages. Guess who gets paid based upon the gross value of your estate...you got it...the Lawyers who do the probate and they get paid off the top of the estate before your loved ones receive anything. Guess who wrote the laws...you guessed it... the Lawyers. I am not saying that lawyers don't earn the money as they have to put up with taking care of every detail of the probate, however, probate is generally not in the best interest of the client if there is a better way (like a Revocable Living Trust).
Estates Too Small for Probate
If your estate is below the $184,000.00 trigger for Probate there are small estate procedures that may require Probate Court, but are less cumbersome and difficult than a full blown probate procedure. Most of the procedures require a lawyer and are expensive, but are not as bad as a probate. These small estate procedures vary greatly upon who is entitled to receive the property under California Law. Again, the people who are going to get your property under the law will certainly get it. The only exception is if they murder you or disclaim their interest.
What is Probate?
Probate is the court-supervised process of distributing the deceased’s assets, paying debts, and handling other legal matters. This process can be time-consuming, expensive, and often a burden on grieving family members.
Without a will or trust in place, the court will appoint an administrator to handle the distribution of your assets according to California’s intestacy laws.
Intestate Succession Decides Who Inherits When you Die Without an Estate Plan in California
In the absence of a will, California’s intestate succession laws determine how your assets are distributed. These laws dictate that your closest relatives—such as a spouse, children, parents, or siblings—inherit your estate based on a predetermined hierarchy. Here’s a simplified breakdown:
If you’re married: Your spouse will inherit all community property and a portion of your separate property. The rest of your separate property will be divided among your children, if you have any.
If you have children but no spouse: Your children inherit everything.
If you have no spouse or children: Your parents, siblings, or more distant relatives (depending on who is alive) will inherit your estate.
This may not reflect your actual wishes. For example, if you wanted to leave part of your estate to a close friend, charity, or an unmarried partner, this wouldn’t happen without an estate plan.
Court-Appointed Guardians for Minor Children
If you have minor children and you die without a will, the court will also decide who becomes their legal guardian. While the court generally tries to appoint a close family member, this may not align with your wishes, and family disputes over guardianship can arise. Having an estate plan allows you to name the guardian of your choice, ensuring your children are cared for according to your preferences.
Delayed Access to Assets
The probate process in California can take months or even years, especially for larger or more complex estates. During this time, your loved ones may have limited or no access to your assets. This can be especially problematic if they depend on those assets to cover immediate expenses, such as funeral costs, mortgage payments, or day-to-day living costs.
By creating an estate plan, you can ensure that your assets are quickly and efficiently transferred to your beneficiaries without delay.
Heirs May Pay More in Taxes and Fees
Another consequence of dying without an estate plan is the potential for your estate to incur higher taxes and fees. Probate fees in California are based on the value of the estate, and these costs can add up quickly. Additionally, without proper planning, your heirs could face larger tax burdens when they inherit your property or assets.
A comprehensive estate plan, including trusts, can help reduce or eliminate many of these costs and taxes, preserving more of your estate for your beneficiaries.
The Importance of Health and End-of-Life Planning
An estate plan doesn’t just handle your assets; it also addresses important issues like health care directives and powers of attorney. Without an advance health care directive, the court may appoint someone to make medical decisions on your behalf if you’re incapacitated. This person may not be the individual you would have chosen to act in your best interest.
By having an estate plan, you ensure that someone you trust will have the legal authority to make medical and financial decisions if you become incapacitated.
Why You Should Act Now
The truth is, no one knows what the future holds. Putting off estate planning can leave your loved ones unprepared and create unnecessary stress. By taking the time to create a will, establish a trust, and make your wishes clear, you provide your family with a roadmap for handling your affairs when the time comes.
At The Miller Elder Law Firm, Russell C. Miller, Attorney and Couselor at Law helps California residents avoid probate and the above mentioned problems with Revocable Living Trust estate plans that reflect their wishes and protect their loved ones. Whether you're interested in setting up a revocable living trust or simply need a will, Russell will guide you through the process and ensure that your assets are distributed according to your wishes.
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