What Happens If You Die Without a Will?
Dying without a will means state laws decide who inherits your assets, not you. It also creates longer, more expensive probate and leaves guardianship decisions for your children up to a judge. This article explores the risks of dying intestate and how a simple will can protect your family.
By Michael Ruger, CFP®
Partner and Chief Investment Officer at Greenbush Financial Group
No one likes to think about their own death, but estate planning is one of the most important financial steps you can take to protect your family and loved ones. One of the simplest — yet most critical — estate planning tools is a will.
Unfortunately, many people pass away without one. According to surveys, more than half of Americans don’t have a will in place. But what really happens if you die without a will?
State laws decide who gets your assets — not you.
The probate process becomes longer, more expensive, and more stressful for your family.
Guardians for minor children are chosen by a judge, not by you.
Children can inherit large sums at age 18 with no safeguards, which can sometimes hurt more than help.
Simple solutions exist — a basic will can often be set up for a minimal cost.
Let’s walk through what happens if you don’t have a will, why that can create complications, and what you can do to avoid these pitfalls.
State Laws Take Over
If you die without a will, you die “intestate.” This means your estate will be distributed according to your state’s intestacy laws. These laws vary by state, but most follow a general pattern:
If you’re married, your assets may be split between your spouse and children.
If you’re single with children, everything generally goes to your kids in equal shares.
If you have no spouse or children, assets may pass to your parents, siblings, nieces, nephews, or more distant relatives.
The problem? State law or a judge, who doesn’t know you or your family dynamics will decide how your estate is distributed. You lose the ability to decide who receives what, when they receive it, or under what conditions.
A Longer, More Expensive Probate Process
With a valid will, your executor follows your instructions and distributes assets relatively quickly. Without a will, the court must:
Appoint an executor (which may take time and spark disagreements).
Require appraisals of property, attorney involvement, and court oversight.
Follow state intestacy laws to distribute assets.
This makes the probate process longer, more complicated, and often more expensive. Beneficiaries can wait months — even years — before assets are fully distributed.
For families already grieving a loss, this added complexity can be emotionally draining.
The Stakes Are Higher With Minor Children
If you have children under 18, the consequences of dying without a will become even more serious.
Guardianship: A judge will appoint a guardian for your children, without knowing who you would have chosen.
Inheritance access: At age 18, children may receive their full inheritance outright.
That means a teenager could suddenly inherit hundreds of thousands of dollars from life insurance, retirement accounts, or the sale of your home. Without safeguards in place, that money may not be used wisely and could dramatically affect your child’s life path.
A properly drafted will (or even better, a trust) can set rules, such as delaying inheritance until your children reach a more mature age or providing funds gradually over time.
Probate Isn’t the Only Issue
Estate planning attorneys often recommend going one step further than a will to avoid probate altogether. Common strategies include:
Revocable living trust: Assets in a trust bypass probate and are distributed privately according to your instructions.
Transfer on Death (TOD) accounts: Bank and brokerage accounts with TOD designations pass directly to beneficiaries without probate.
Beneficiary designations: Retirement accounts and life insurance policies allow you to name beneficiaries directly, which supersedes a will.
These strategies not only streamline the distribution process but can also protect your family from unnecessary legal fees and court delays.
A Will Doesn’t Have to Be Expensive
One of the biggest misconceptions is that creating a will is time-consuming or costly. In reality, establishing a will can be very inexpensive:
Online services like LegalZoom.com or Rocket Lawyer can help you set up a simple will for a minimal fee.
While these are good starting points, we recommend working with an estate attorney if your situation is more complex — especially if you have children, significant assets, or unique wishes.
Think of a will as one of the most affordable forms of “insurance” you can buy. For a small upfront cost, you can save your family thousands of dollars, countless hours, and significant emotional stress later.
Final Thoughts
If you die without a will, the state — not you — decides how your assets are distributed and who cares for your children. The probate process becomes more costly, more time-consuming, and much more stressful for your loved ones.
The good news is that creating a will is relatively easy and inexpensive. Whether through a simple online service or a consultation with an estate attorney, taking this step ensures you stay in control and your family is protected.
At the end of the day, a will is about more than just money — it’s about peace of mind.
About Michael……...
Hi, I’m Michael Ruger. I’m the managing partner of Greenbush Financial Group and the creator of the nationally recognized Money Smart Board blog . I created the blog because there are a lot of events in life that require important financial decisions. The goal is to help our readers avoid big financial missteps, discover financial solutions that they were not aware of, and to optimize their financial future.
Frequently Asked Questions (FAQs)
What happens if you die without a will?
If you die without a will, your estate is distributed according to your state’s intestacy laws. This means a court decides who receives your assets and when, which can lead to outcomes you may not have intended.
How does dying without a will affect the probate process?
Without a will, the probate process is usually longer, more expensive, and more complicated. The court must appoint an executor, oversee asset distribution, and may require appraisals or attorney involvement—all of which add time and cost.
What happens to minor children if a parent dies without a will?
If you have minor children and no will, a judge will decide who becomes their guardian. In addition, any inheritance they receive becomes theirs outright at age 18, without safeguards to ensure it’s managed responsibly.
Can you avoid probate without a will?
Yes. Using tools like revocable living trusts, Transfer on Death (TOD) accounts, and beneficiary designations can help assets pass directly to heirs without going through probate. These strategies can save time and reduce legal expenses.
Is creating a will expensive or time-consuming?
Creating a basic will is typically affordable and straightforward. Online services can help for a low cost, while more complex situations may benefit from an estate attorney’s guidance.
Why is having a will so important?
A will ensures your wishes are honored, your loved ones are protected, and your estate is distributed efficiently. It also provides peace of mind knowing your family won’t face unnecessary legal or financial burdens during an already difficult time.
Understanding Per Stirpes Beneficiary Designations
“Per stirpes” is a common estate planning term that determines how assets pass to descendants if a beneficiary dies before you. Greenbush Financial Group explains how per stirpes works, compares it to non–per stirpes designations, and outlines why updating your beneficiary forms is critical for ensuring your wishes are honored.
By Michael Ruger, CFP®
Partner and Chief Investment Officer at Greenbush Financial Group
When you fill out a beneficiary form for a retirement account, life insurance policy, or investment account, you may come across the term “per stirpes.” It’s a Latin phrase, but don’t let that intimidate you. Choosing per stirpes for your beneficiaries simply determines what happens if one of your named beneficiaries passes away before you do.
In this article, we’ll cover:
What per stirpes means and how it works
A simple comparison of per stirpes vs. non–per stirpes designations
Why keeping beneficiaries up to date is so important
Special considerations when children or minors are involved
What Does Per Stirpes Mean?
Per stirpes means “by branch” or “by the bloodline.” With this designation, if one of your named beneficiaries passes away before you, their share of the inheritance automatically passes down to their descendants.
If you don’t select per stirpes, your beneficiary designation is considered non–per stirpes, which means that if a beneficiary predeceases you, their share is generally redistributed among the remaining named beneficiaries.
Example: 50/50 Beneficiaries
Let’s walk through a clear example.
Case 1: Non–Per Stirpes (default in many plans)
You name your two children, Anna and Ben, as 50/50 beneficiaries.
Anna passes away before you.
Result: Ben inherits 100% of the account. Anna’s children (your grandchildren) do not receive anything unless you’ve updated the beneficiary form to include them.
Case 2: Per Stirpes
You name your two children, Anna and Ben, as 50/50 beneficiaries per stirpes.
Anna passes away before you, leaving two children of her own.
Result: Ben still receives his 50% share. Anna’s 50% share is split evenly between her two children (25% each).
This is why per stirpes is often called a “fail-safe” designation—it ensures the inheritance follows the family line if a beneficiary dies before you.
Why Keeping Beneficiaries Updated Matters
While per stirpes can act as a backup plan, the best approach is to keep your beneficiary designations current.
If a beneficiary passes away, you can always file a new form naming updated beneficiaries.
If you update promptly, the per stirpes designation never even comes into play.
Regular reviews—especially after major life events like births, deaths, or divorces—can help ensure your assets go exactly where you intend.
Special Considerations for Minors
Per stirpes can create complications if the next in line are minor children. For example, if Anna’s 50% share passes to her 10-year-old child, that minor generally cannot inherit assets outright. Instead, the guardian of the child may have to serve as a custodian to the account until the child reaches the age of majority. However, when the child reaches the age of majority, they gain full control over their inheritance, which may or may not be beneficial.
This raises an important planning question:
Do you want minor children to inherit directly?
Or would it make more sense to create a trust and name the trust as the beneficiary?
Working with an estate planning attorney can help clarify the best approach for your family.
Key Takeaways
Per stirpes means a beneficiary’s share passes down to their descendants if they predecease the account owner.
Non–per stirpes means a predeceased beneficiary’s share is typically divided among the remaining beneficiaries.
Keeping beneficiary forms up to date reduces the need to rely on per stirpes.
If potential per stirpes beneficiaries are minors, additional planning (like a trust) may be necessary.
Beneficiary designations are powerful estate planning tools. A quick review of your forms can make all the difference in ensuring your assets are passed down according to your wishes—without leaving things to chance.
About Michael……...
Hi, I’m Michael Ruger. I’m the managing partner of Greenbush Financial Group and the creator of the nationally recognized Money Smart Board blog . I created the blog because there are a lot of events in life that require important financial decisions. The goal is to help our readers avoid big financial missteps, discover financial solutions that they were not aware of, and to optimize their financial future.
Frequently Asked Questions (FAQs)
What does “per stirpes” mean on a beneficiary form?
“Per stirpes” is a Latin term meaning “by branch” or “by bloodline.” It ensures that if a named beneficiary passes away before you, their share automatically goes to their descendants, such as their children or grandchildren.
How does per stirpes differ from non–per stirpes?
With a per stirpes designation, a deceased beneficiary’s share passes down to their heirs. In contrast, a non–per stirpes designation redistributes that share among the remaining living beneficiaries, bypassing the deceased beneficiary’s family line.
Why should I keep my beneficiary designations up to date?
Life events such as marriages, births, deaths, or divorces can change your intentions for who should inherit your assets. Regularly updating your forms ensures your accounts are distributed according to your current wishes rather than relying on default rules or outdated designations.
What happens if a per stirpes beneficiary is a minor?
Minors typically cannot inherit assets outright, so a custodian or guardian may need to manage the funds until the child reaches adulthood. Some families use trusts to control when and how minors receive their inheritance.
When should I consider naming a trust instead of individuals as beneficiaries?
If you want more control over how and when heirs—especially minors—receive their inheritance, naming a trust as the beneficiary can help. A trust allows you to set specific rules for distributions and avoid complications with guardianship or early access to funds.
Is per stirpes the best option for everyone?
Not necessarily. While per stirpes ensures assets follow the family line, some people prefer equal redistribution among surviving beneficiaries. The best choice depends on your family structure, estate goals, and how you want your assets to be passed down.
Trust Roles Easily Explained: Grantor, Trustee, and Beneficiary
Trust Roles Explained Easily: Whether you're setting up a trust or are currently an interested party in a an existing trust, understanding who does what is essential.
When it comes to estate planning, trusts can be powerful tools—but they’re only as effective as the people involved. Whether you’re creating a trust or have been named in one, you need to understand three key roles: grantor, trustee, and beneficiary.
Here’s how each role works, how they relate to one another, and what to watch out for.
The Three Key Roles in a Trust
1. Grantor (also called Settlor)
The grantor is the person who creates the trust and decides what goes into it and how it should be managed.
What the Grantor Does:
Creates and funds the trust
Sets the rules for how assets will be distributed
Names the trustee and beneficiaries
Can often serve as a trustee in a revocable trust
Example:
Sarah creates a revocable living trust and transfers her home and investment account into it. She sets terms for how her assets should pass to her children. Sarah is the grantor.
2. Trustee
The trustee is the person or institution responsible for managing the trust and following the rules set by the grantor.
Trustee Responsibilities:
Manage and safeguard trust assets
Follow the trust document’s instructions
Distribute funds to beneficiaries
Maintain records, file taxes, and act as a fiduciary
Example:
Sarah establishes an Irrevocable Trust and names her sister Emily as trustee. The trustee is awarded specific powers over the trust assets, such as establishing an investment account for the trust, selling real estate, making gifts to beneficiaries, hiring an accountant to prepare the tax return for the trust, and eventually distributing the assets accordingly. Emily is the trustee.
3. Beneficiary
The beneficiary is the person (or group) who receives the benefit of the trust, either now or in the future.
Beneficiaries Typically:
Receive income or assets according to the trust terms
Do not control how the trust is managed
Example:
Sarah’s children, Ava and Ben, are listed as beneficiaries. The trust states they’ll receive assets at age 30 but the trustee is allowed to distribute money from the trust to Ava and Ben to provide financial support for education, health, shelter, and living expenses. Ava and Ben are the beneficiaries.
Can One Person Fill Multiple Roles?
Yes. In many revocable trusts, the grantor can also be the trustee and beneficiary while alive. However, they must name a successor trustee to step in when needed.
In irrevocable trusts, the grantor typically gives up control and cannot serve as trustee or beneficiary.
For trusts that name someone beside the grantor as a trustee, it’s common that the trustee may also be a beneficiary of the trust.
Example:
Sarah establishes an Irrevocable Trust and names her daughter, Ava, as Trustee. Ava is also a beneficiary of the trust with her brother Ben.
Why These Roles Matter
Choosing the wrong person or failing to clearly define roles can lead to:
Disputes among family members
Over-providing or under-providing powers to the trustee
Mismanagement of assets
Delays in distribution or tax problems
Planning Tips
Review your trust documents and confirm who’s named in each role
Confirm all of the powers you have provided to the trustee
Name backup (successor) trustees in case your primary can’t serve
Pick a trustee who is reliable, impartial, and financially competent
Make sure your beneficiaries are clearly defined and up to date
Common Mistakes to Avoid
Naming a trustee who lacks the time or skills to manage finances
Forgetting to update your trust after a major life event (death, divorce, birth)
Assuming your trustee can make decisions outside the written terms (they can't)
Not reviewing your trust with your attorney after major tax law changes
Final Thought
Trusts only work when the right people are in the right roles—with a clear roadmap to follow. If you haven’t reviewed your trust recently, now is a great time.
About Michael……...
Hi, I’m Michael Ruger. I’m the managing partner of Greenbush Financial Group and the creator of the nationally recognized Money Smart Board blog . I created the blog because there are a lot of events in life that require important financial decisions. The goal is to help our readers avoid big financial missteps, discover financial solutions that they were not aware of, and to optimize their financial future.
Frequently Asked Questions (FAQs):
What is a grantor in a trust?
The grantor (also called the settlor) is the person who creates and funds the trust. They decide what assets go into it, set the distribution rules, and name the trustee and beneficiaries. In many revocable trusts, the grantor may also serve as the trustee during their lifetime.
What does a trustee do?
The trustee manages the trust’s assets according to the grantor’s instructions. Responsibilities include safeguarding property, making distributions to beneficiaries, maintaining records, filing taxes, and acting in the best interests of the beneficiaries. The trustee must follow the trust document exactly as written.
Who are the beneficiaries of a trust?
Beneficiaries are the individuals or organizations who receive the benefits of the trust, either through income distributions, asset transfers, or both. They do not control how the trust is managed unless specifically granted that authority.
Can one person serve as grantor, trustee, and beneficiary?
Yes, in many revocable living trusts, one person can fill all three roles. However, for irrevocable trusts, the grantor typically gives up control and cannot act as trustee or beneficiary. In some cases, a trustee may also be a beneficiary if allowed by the trust terms.
What happens if the trustee is also a beneficiary?
It’s common for a trustee to also be a beneficiary, especially in family trusts. However, this arrangement can create conflicts of interest, so the trust should clearly define limits on the trustee’s powers to ensure fair treatment of all beneficiaries.
Why is choosing the right trustee important?
The trustee controls how and when trust assets are managed and distributed. Selecting someone unreliable or inexperienced can lead to mismanagement, family disputes, or tax problems. A trustee should be financially responsible, impartial, and able to follow complex legal instructions.
Can a trust have more than one trustee?
Yes. Co-trustees can share responsibilities, which can help balance workload and oversight. However, having multiple trustees can also slow decision-making, so coordination and clear communication are essential.
What is a successor trustee?
A successor trustee is a backup who steps in if the primary trustee is unable or unwilling to serve. Naming one (or more) successor trustees ensures that the trust continues to operate smoothly without court involvement.
What are common mistakes people make when setting up a trust?
Frequent mistakes include naming an unqualified trustee, failing to update the trust after major life changes, misunderstanding the trustee’s authority, and neglecting to review the trust after tax law updates.
Why is it important to review your trust regularly?
Laws, family circumstances, and financial situations change over time. Reviewing your trust every few years—or after major events like marriage, divorce, or the birth of a child—ensures that your intentions remain clear and your plan stays effective.
