What Happens If You Don’t Have a Will? The Impact on Probate

Estate planning is one of the most important steps you can take to protect your family's future, yet nearly 67% of Americans don't have a will, according to Consumer Reports. When someone dies without a will, they're considered to have died "intestate," and their assets must go through a probate process that can be costly and time-consuming for their loved ones. This legal situation can leave families struggling to work through complicated court procedures while simultaneously dealing with their grief.

The consequences of dying without a will extend far beyond just the distribution of assets. Your family members may face lengthy delays in accessing funds they need for basic expenses, and relationships between siblings or other relatives can become strained as they disagree about what you would have wanted. 

Additionally, without proper estate planning, your assets might not go to the people you would have chosen, and your family could end up paying significantly more in taxes and court fees than necessary.

We've seen countless families in St. Louis, Missouri struggle through the probate process when their loved ones didn't have a will, and we want to help you understand exactly what's at stake. 

At Moore Legal, LLC, we will explain the realities of dying without a will, describe how the probate process works in these situations, and highlight why estate planning is so crucial for protecting your family's future. Read on to learn what could happen to your assets and loved ones if you don't take action now.

Understanding Intestate Succession

When someone dies without a will, state laws known as "intestate succession" determine who inherits their property. These laws create a rigid structure that may not align with your personal wishes or family situation. 

Each state has its own specific rules about how property should be distributed, but they generally follow a similar pattern of prioritizing spouses and blood relatives. The court must strictly follow these laws regardless of what the deceased person may have wanted or what family members believe is fair.

The probate court will appoint an administrator to manage the estate since there's no executor named in a will. This person must identify and inventory all assets, pay outstanding debts and taxes, and distribute the remaining property according to state law. 

The administrator is often a family member, but they must be approved by the court and may need to post a bond to protect the estate's assets. This process can add significant expense and delay to the probate proceedings.

Without estate planning, your assets might pass in ways that surprise or disappoint your loved ones. For example, if you're married with children from a previous relationship, your current spouse might receive a smaller share than you would have wanted, while estranged relatives could inherit against your wishes. 

The lack of a will can also create complications for unmarried partners, as they typically have no inheritance rights under intestate succession laws.

Common Misconceptions About Dying Without a Will

Many people have incorrect assumptions about what happens to their assets if they die without a will. Here are some of the most common misconceptions we encounter:

• All assets go to the spouse: Many married people assume their spouse will automatically inherit everything. This isn't always true, as some states split assets between the surviving spouse and children.

• The eldest child takes charge: There's no automatic right for any child to manage the estate. The court appoints an administrator based on state law and individual qualifications.

• Verbal promises count: Telling family members how you want your assets distributed has no legal weight without a written will. The court must follow intestate succession laws regardless of verbal agreements.

These misconceptions can lead people to delay estate planning, thinking their assets will naturally flow to their intended beneficiaries. However, intestate succession laws rarely align perfectly with anyone's wishes. Understanding these common myths helps demonstrate why proper estate planning is so crucial for protecting your family's interests.

The True Cost of Dying Without a Will

The financial impact of dying without a will extends far beyond basic court fees and legal expenses. Here's what your family might face:

• Higher administrative costs: Court-supervised administration typically requires more attorney involvement and documentation than estates with proper planning, often doubling or tripling the legal fees.

• Lost tax advantages: Without strategic estate planning, your heirs might miss out on various tax benefits and exemptions that could have saved them thousands of dollars.

• Property liquidation losses: When assets must be sold quickly to pay expenses or divide the estate, they often sell below market value, reducing your family's inheritance.

These expenses can significantly reduce the amount your heirs ultimately receive. Additionally, the longer probate takes, the more costs accumulate, making it even more important to have proper estate planning in place to streamline the process and protect your assets.

Impact on Family Relationships

Going through probate without a will often strains family relationships in ways that could have been avoided with proper estate planning. Siblings might disagree about who should serve as administrator or how to interpret state inheritance laws. 

These conflicts can escalate quickly when there's no clear document expressing the deceased's wishes. The emotional toll of these disputes often lasts long after the probate process ends, permanently damaging once-close family bonds.

Family businesses face particular challenges when there's no will or succession plan in place. Multiple heirs might claim the right to run the company, leading to management conflicts that can destroy the business's value. We've seen successful family enterprises collapse under the weight of succession disputes that could have been prevented with proper planning.

The absence of a will can be especially problematic in blended families. Step-children might be completely excluded from inheritance under intestate succession laws, even if they had a close relationship with the deceased. Similarly, unmarried partners have no inheritance rights regardless of the length or commitment level of their relationship.

The Probate Timeline Without a Will

Probate without a will typically takes significantly longer than probate with a will. Most estates require at least the following steps:

• Initial court proceedings: The court must verify death, jurisdiction, and appoint an administrator, which can take several months even in straightforward cases.

• Asset inventory phase: The administrator must identify, value, and secure all assets, a process that becomes more challenging without guidance from a will.

• Creditor notification period: State law requires a waiting period for creditors to make claims, usually ranging from four months to a year.

The timeline can stretch even longer if family members contest the administration or if the estate includes intricate assets like business interests or out-of-state property. While every case is different, estates without wills typically take 50% longer to settle than those with proper estate planning documentation.

Special Considerations for Business Owners

Business owners face additional challenges when they die without a will. Without clear succession instructions, your business operations could come to a halt while the court determines who has the authority to make decisions. 

This interruption can lead to lost revenue, damaged client relationships, and decreased business value. Additionally, your business might need to be sold quickly to satisfy creditors or divide the estate, potentially resulting in a sale price well below its true value.

The impact on employees can be severe as well. Without clear leadership succession, your staff might face uncertainty about their jobs and future direction. Key employees might leave for more stable opportunities, taking valuable knowledge and relationships with them. 

The administrator appointed by the court might lack the industry knowledge needed to make informed decisions about business operations, potentially leading to choices that harm the company's long-term prospects.

Partnership situations become particularly challenging without a will. Your business partners might suddenly find themselves working with your heirs, who may have different goals or lack business experience. This situation often leads to conflict and can force the dissolution or sale of otherwise successful businesses.

Let's Plan Your Estate Together

Don't leave your family's future to chance. Working with an experienced attorney can make the process straightforward and help you properly document your wishes. We serve clients in St. Louis, Missouri as well as throughout St. Louis County, St. Charles County, and Jefferson County. Contact Moore Legal LLC today to schedule a consultation and take the first step toward protecting your family's future.