When you write a will, it gives you a chance to make decisions regarding how your assets will be distributed to specific beneficiaries. This includes tangible assets, financial assets and much more.
If you die without a will, it is known as dying intestate. In that case, state law will dictate exactly what happens to the assets you own at the time of your passing. You have less control over how those assets are distributed, which is why it is beneficial to be proactive about writing a will.
The general succession plan
New York has state laws in place determining who should receive assets if you do not have an estate plan.
If you have a surviving spouse and a child, for instance, your spouse will receive $50,000 and then 50% of your remaining estate. The rest of your estate will be left to your child. This essentially splits your estate in half, but it does provide slightly more money for your surviving spouse.
If you only have a surviving spouse and no child, then your spouse gets the entire balance. If you do not have a surviving spouse, but you do have a child, then it is the child who receives the entire balance.
Furthermore, if you do not have a child or a surviving spouse, but one or both of your parents are still alive, then they will receive the balance of your estate. Essentially, the law sets up a succession plan with an order of importance that has to be followed.
Drafting an estate plan
Along with not having a say in how assets are distributed if you do not have a will, more of your assets may have to be paid out in taxes, keeping less of your money in the family. This is just one of the reasons why it is important to understand what legal steps to take to draft a will in advance.