What Happens If I Die Without an Estate Plan in California?

No one likes to think about their own mortality, but planning for the future is essential to protect your loved ones and ensure your wishes are honored. An estate plan is a critical tool for achieving these goals, but what happens if you die without one in California? The answer lies in the state’s intestate succession laws, which determine how your assets are distributed when no estate plan is in place.

What Is Intestate Succession?

When someone dies without an estate plan—whether that means no will, no trust, or any other legal documentation—they are said to have died "intestate." In California, intestate succession laws dictate who inherits the deceased person’s property. These laws are rigid and often do not reflect the deceased’s personal wishes.

How Are Assets Distributed?

The distribution of assets under California’s intestate succession laws depends on your family situation. Here’s a general overview:

1. If You’re Married

   • Community Property: In California, any community property (assets acquired during the marriage) is automatically passed to the surviving spouse.

   • Separate Property: Separate property (assets owned before marriage or acquired by gift or inheritance) is distributed based on whether the deceased has surviving children, parents, siblings, or other relatives. If there are no surviving descendants, the entire separate property goes to the surviving spouse. If there are descendants, the spouse typically receives one-third to one-half of the separate property, and the rest is divided among the children.

2. If You Have Children But No Spouse

   • If you have children and no surviving spouse, your entire estate is divided equally among your children. If a child has predeceased you but left descendants (your grandchildren), those descendants will inherit their parent's share.

3. If You’re Single With No Children

   • If you die without a spouse or children, your estate will go to your parents. If your parents are not alive, it will go to your siblings. If there are no siblings, more distant relatives such as nieces, nephews, aunts, uncles, and cousins may inherit your estate.

4. No Surviving Relatives

   • If you have no surviving relatives, your estate "escheats" to the state of California, meaning the state inherits your property.

Why Is Having an Estate Plan Important?

Dying without an estate plan can lead to outcomes that might not align with your wishes. For instance, if you are unmarried but have a long-term partner, they won’t inherit anything unless you have a will or trust specifying your intentions. Similarly, if you have specific desires about how your assets should be divided or want to leave something to a friend or charity, intestate succession laws won’t take these wishes into account.

Additionally, without an estate plan, your assets may be subject to the probate process. In California, probate can be lengthy, costly, and public, exposing your estate to unnecessary complications and delays.

The Benefits of Establishing a Trust

A comprehensive estate plan, which includes a living trust, can help you avoid these issues. A living trust allows you to bypass probate, ensuring that your assets are distributed quickly and privately to your beneficiaries. It also provides flexibility and control, allowing you to specify how and when your assets should be distributed, and plan for your care in the event of incapacity.

By establishing a trust, you can:

• Avoid Probate: Keep your estate out of the court system and ensure a smooth, private transfer of assets to your beneficiaries.

• Control Asset Distribution: Specify detailed instructions for how and when your assets should be distributed, which is particularly important if you have minor children or other specific concerns.

• Plan for Incapacity: Designate a successor trustee to manage your affairs if you become unable to do so.

Conclusion

Dying without an estate plan in California can lead to unintended outcomes and a complicated probate process for your loved ones. While it might seem easier to delay creating an estate plan, the consequences of not having one can be significant.

If you want to protect your assets and ensure your loved ones are taken care of according to your wishes, it’s essential to establish a comprehensive estate plan, including a living trust. Our firm specializes in creating customized estate plans tailored to meet the unique needs of our clients.

Contact our office today to schedule a consultation and learn how we can help you create a plan that secures your legacy and provides peace of mind for you and your family.