Inheritance laws - rules for transferring property after death in various states.

It's easy to assume that writing a will ensures that your assets are distributed according to your wishes. And in most states in the United States, this is generally true. However, there are a few states that have some provision that can ensure that you and your partner receive a fair share of the estate when one of you dies.

There is no single perfect system regarding inheritance; some may reflect a person's actual wishes in the event of an unexpected death, while others may override what they foresaw for their assets. There are three systems of inheritance law in the United States. It is important to know which ones affect your state and therefore your''will.

Understanding inheritance law

Inheritance law is the laws and rules that determine how individuals receive assets from the estate of a deceased family member. These laws ensure that heirs can receive a certain portion of an inheritance if a will was never written or does not cover all of the deceased person's assets. In some cases, these laws also provide certain relatives with inheritance rights that they can exercise regardless of the actual terms of the deceased person's will.

In the context discussed here, inheritance laws generally apply to a deceased person's spouse/partner. While there are fewer rules regarding children, they generally''have the opportunity to receive a share of the deceased person's estate. In most states there are laws protecting against accidental non-granting of inheritance at the birth of a child, if the will was made before the child's birth and was not revised before the death of the relative. Thus, if no inheritance is left for one child but is granted to his or her siblings, it is presumed that the omission was accidental and said child will be given an equal share. In some jurisdictions, these laws may also apply to grandchildren.

When a person dies without a will, their inheritance is considered "intestate." This means that a court-appointed administrator will make a list of all of the deceased person's assets, pay all debts or taxes, and distribute''left to heirs under the laws of their state. A will may also be considered 'probateable' if it is declared invalid for various reasons. In either case, only the court of the probate court assigned to the estate is responsible for distributing the estate of the deceased.

Distribution by state

Make sure you know which of the three systems of probate law apply in your state. Here's how each works and how they may affect you.

General self-interest

The first type of inheritance law is called a group estate. Under this system, each spouse automatically owns half of the property they received during the marriage. Thus, when one''a person dies, half of their estate automatically passes to their partner, while the other half can be distributed to other heirs.

Common law

Thirty-eight of the remaining 41 states operate under common law principles. In the context of inheritance law, spouses living in these states are not automatically entitled to half of the assets received during the marriage. At the same time, however, many states grant the surviving spouse the right to one-third or even one-half of the decedent's estate, also regardless of the terms of the will. However, these terms apply only if the surviving spouse applies''to the court for his share. Under the common law, ownership is determined by the name on the title deed to the property or by whoever participated in its acquisition.

Selective common law

Three states do not fit into either of these two categories. Alaska, for example, implemented a selective common law system of joint ownership in 1998. It remains a de facto common law state, but a spouse can also have an automatic right to inherit if he or she signs a written agreement with a partner or creates a property trust. Tennessee passed a similar law in 2010, while Kentucky enacted a system of selective common law ownership in 2020. Each of these states as''Residents and non-residents alike can create common property through a property trust.

In times of mourning, the last thing anyone would want to face is difficulties with the inheritance process. So, although it's uncomfortable to think about, it's important to get your affairs in order as soon as possible to avoid confusion and ensure that your will is executed in accordance with its provisions. To do this, make sure you understand your state's inheritance laws when making your estate distribution plan. This will give you the best chance that your asset plans will not be overridden.