Laws of intestacy
How a will helps you avoid Indiana laws of intestacy?
If you die without a will in Indiana, you have “died intestate.” Intestacy laws vary from state to state, and as an Indiana resident, it may be beneficial for you to know to whom your assets will go without a will—and how the creation of a will can help you avoid Indiana laws of intestacy.
Intestate succession primarily deals with assets that would go through probate. Probate is the process of distributing assets from a decedent when they pass away, requiring a court of law to review the deceased person’s estate. Often, people want to avoid probate as it is both a costly and timely process.
The assets that would go through probate are impacted by Indiana laws of intestacy. Your marriage status, living family relatives, and number of children all steer how your assets are distributed without a will, as decided by the state of Indiana. Currently, Indiana intestate law finds that if you (the deceased) die with:
Spouse, no children or parents: spouse inherits all of the estate
Children, no spouse: Children inherit all of the estate
Spouse, children: inheritance is split 50%-50% between spouse and children
Spouse, parents: inheritance is split 75% to spouse, 25% to parents
These are only a few examples of how your inheritance is automatically distributed by the state under intestacy—further distributions can depend on how many living siblings you have, if you have children with a former spouse but are still currently married. In most instances, your estate will be prioritized towards going to your immediate family members, as opposed to any distant relatives or friends.
If you would like to establish where your estate will go when you pass, a will can allow you to do so, protecting assets for you and your loved ones.
How a revocable trust helps avoid probate
When an individual passes away, certain assets have to go through probate. Probate is the process of distributing assets from a decedent when they pass away, requiring a court of law to review the deceased person’s estate. Often, people want to avoid probate as it is both a costly and timely process.
One method of avoiding probate is through a revocable trust. A revocable trust is a type of living trust that allows the creator of that trust to control their assets and their beneficiaries. The main difference between a revocable trust and an irrevocable trust is that in a revocable trust, the creator can change or alter the conditions of the trust at any time.
A revocable trust involves the trust maker/creator, and they usually establish successor trustees for when the initial trustee/trust maker passes away. Typically, and especially in the case of avoiding probate, the creator can make their children success trustees and beneficiaries.
Because the revocable trust involves the transfer of certain assets, when the individual dies, their assets within the trust do not have to go through the incredibly costly process of probate. Instead, the successor beneficiaries can receive their assets more immediately and without going through an estate lawyer and public court or being subject to claims of creditors.