What Happens if You Die Without a Will? You Could Leave Heirs—and Pets—With Even More Grief.

Are you dithering about preparing your will? If you die without one, the state will make all of the calls on where your assets go, with potentially unhappy results.

When the singer Prince died in 2016 without a will, it took six years for probate court to divide his $156 million estate among his six siblings and half-siblings. The estate appeared settled in 2022. But this year, a lawsuit was filed against part of the estate, eight years after his death, according to Rolling Stone.

Large estates like Prince’s sometimes attract lawsuits even when there is an estate plan. However, had the Purple Rain singer written a will and properly titled assets to intended heirs, Prince could have named who would control his financial assets and legacy.

If you don’t write a will, you are leaving it up to state probate court to name your heirs for your financial assets. Wills also are critical to protecting minor children and pets, and making sure the right people end up caring for them.

What Happens After Death

When a death certificate is issued, it’s filed with the county clerk’s office. If you die without a will and no one sends the certificate to probate court, your property lies in limbo. In a worst-case scenario, if assets such as real estate or bank or investment accounts have no beneficiaries listed, they probably will end up in your state’s unclaimed property department.

Anyone can send a death certificate to start the probate process, says Andrew Crowell, vice chairman of wealth management at D.A. Davidson. A judge will determine an administrator, which can be a family member, friend, financial institution, or creditor.

Administrators must compile a list of assets and search for potential heirs. Administrators also file the estate’s last tax return and Internal Revenue Service Form 706, which determine if the estate owes any federal or state estate taxes.

Previous years’ tax returns can offer some clues to locate assets, but it’s harder to find dormant property, such as savings bonds or non-interest-bearing bank accounts, says Pat Simasko, estate planning attorney at Simasko Law. Because probate proceedings are public record, organizations that search for unclaimed property may try to contact potential heirs or administrators, offering to collect the funds for a hefty commission.

Properly titling your assets with preferred beneficiaries matters as much as having a will, says Leila Francis, national head, fiduciary advisory services at BMO Wealth Management. Retirement accounts with listed beneficiaries, such as 401(k)s, supersede a will. So, if most of your money is in your 401(k), listing your beneficiaries may be the most important thing to do.

Francis recounted a case where the husband in a second marriage died and left instructions in his trust to divide his $10 million estate equally among his second wife and children. However, all of the assets were in joint tenancy with his second wife, so the kids received nothing.

If, instead, he had retitled his assets, which included his home, a second home, and investment accounts, he could have ensured his kids’ inheritance.

How Assets Are Divided

A will allows you to clarify how you want both your financial and personal property to be distributed. With neither a will nor listed beneficiaries on financial assets, state laws determine distribution.

Elizabeth Acevedo, shareholder/director at law firm Weinstock Manion, says in states such as California, spouses are entitled to community property. If a spouse dies without a will and has separate property, the surviving spouse will need to equally divide those assets with their children. If there are no children, the spouse gets half of the separate property and the rest may go to the deceased spouse’s family.

If you are unmarried, have no children, and die without a will, your parents would receive your assets, if they are still alive. Otherwise, assets are distributed across the family tree, first to siblings, then nieces or nephews, Francis says.

Wills are critical for parents of minor children who want to guarantee specific guardianship of their kids in case of the parents’ death. Without a will, family members can petition probate court to act as guardians, with grandparents having first priority, Acevedo says. Not designating a guardian could create fights among family members over custody.

“You’re leaving it to other people to make the decision for you, and local law to decide who will ultimately then raise your children,” she says.

Creating a will, and also a trust for special-needs children, is critically important, as any money they inherit that’s not properly structured may affect their government benefits, Francis says.

The same goes with pets. Without specific instructions, Fido may end up in an animal shelter.

Wills don’t have to be complicated, Acevedo says. If you have a small estate, you can avoid paying lawyers by using online tools and updating beneficiary forms. Wills can be as simple as jotting down the names of the people you want to receive your assets, she adds.

“I have probated a Post-it note before as a will because it met all of the requirements. It was in the decedent’s handwriting. It was dated and signed,” Acevado says. “This doesn’t have to be an overwhelming process. If nothing else, take the time to literally write it down on a piece of paper and put that paper somewhere safe.”