What Happens to My Property if I Don't Have a Will? Understanding Intestacy Laws

Estate planning might not be at the forefront of your mind, but it's a crucial contingency for most adults. Regardless of your age or the size of your estate, if you still need to outline how you want your assets to be distributed after your passing, your state's intestacy laws will step in to handle the matter. Intestacy laws determine the default distribution of your property when you die without a will. However, these defaults often need to align with your actual wishes, which is why having an estate plan is so vital.

Sometimes, life events happen before you get the chance to create a will or other estate planning documents. In such cases, it's essential to be aware of your state's intestacy laws and consult with an estate law attorney. 

What Intestacy Laws Cover

Intestacy laws deal with a person's "probate estate," which includes assets that a will could have controlled if one had been executed. This typically comprises two main categories: 

·         Real Property: This includes real estate and buildings.

·         Personal Property: This refers to movable assets like money, jewelry, or vehicles.

Assets not included in the probate estate encompass life insurance, property with rights of survivorship, and property held in trust. 

The Surviving Spouse's Share

If you have a surviving spouse, they take precedence over other relatives when it comes to default inheritance rights in North Carolina. Intestacy laws prioritize the surviving spouse and grant them a more substantial default share of the estate. 

The surviving spouse's intestacy laws in North Carolina are as follows:

·         If the deceased has no surviving biological descendants or parents, the surviving spouse inherits the entire estate.

·         If the deceased is survived by their spouse and only one child or parent, and the deceased's personal property doesn't exceed $60,000, the spouse receives half of the deceased's real property and all of their personal property. The remaining half of the real property goes to the surviving child or parent.

·         Suppose the deceased is survived by their spouse and only one child or parent, and the deceased's personal property exceeds $60,000. In that case, the spouse gets the first $60,000 in value of the deceased's personal property, in addition to half of the remaining value of the personal property and half of the real property. The surviving child or parent receives the remaining half of the real property and what's left of the personal property.

Other Relatives' Shares

For individuals without a surviving spouse, the shares of other relatives depend on factors like the number of surviving children and the degree of relation to the deceased. It's essential to consider whether any other relatives in the same class are still alive. 

Inheritance Order for Other Relatives

·         If the deceased was unmarried or their spouse is not surviving:

·         If only one child survives the deceased, that child inherits the entire net estate.

·         If the deceased is survived by two or more children or by one child and a lineal descendant of a deceased child, inheritance is determined by N.C.G.S. 29-16.

·         If the deceased is not survived by any children or lineal descendants of a deceased child, the estate goes to the deceased's parents if they are still living.

·         If the deceased's parents are not alive, the estate passes to the deceased's siblings and the lineal descendants of any deceased siblings.

·         If none of the above parties are present, the estate goes to the surviving grandparents, if any. The paternal or maternal grandparents' share goes to the relevant aunts and uncles if both grandparents are deceased.

·         If there are no lineal relatives left on the deceased's paternal side, their portion of the estate transfers to the relatives entitled to take on the maternal side, and vice versa. 

Inheritance Amount for Other Relatives

N.C.G.S. 29-16 outlines the calculation for the amount of the estate that various classes of heirs receive. This includes calculations for children and grandchildren. Intestacy laws are complex, and the probate process of distributing a person's estate, whether they had a will or not, can be lengthy and complicated. An experienced estate law attorney can guide you and your family through this challenging time.