Everyone in Alaska should understand the importance of estate planning regardless of their age, family circumstances and financial situation. Having a basic will can take the guesswork out of the equation and give control over where their property goes after they are gone.
Failure to create even a basic estate plan means that the person dies intestate. That leaves their property at the mercy of state law. How it is distributed could differ greatly from what they would have wanted. Before deciding that a will is unnecessary, knowing what happens if the person dies intestate is imperative.
Know how property is distributed if there is no will
It is important to know that simply not having a will is one way in which a person dies intestate. They will also die intestate if their will is invalid. To be valid, the testator needs to be at least 18, be of sound mind and have two witnesses sign it.
When a person dies intestate and they have a surviving spouse but no descendants, the surviving spouse gets the entire estate. If there are descendants who are also descendants of the surviving spouse with no other surviving descendants from another relationship, the surviving spouse gets the entire estate.
If the surviving spouse does have descendants from another relationship, then the surviving spouse will receive $150,000 and half of whatever is left over. The descendants get half of the balance after that initial $150,000. When there are descendants but they are not related to the surviving spouse, the spouse gets $100,000 and half the balance; the descendants get the other half.
Without descendants but with surviving parents, the spouse gets $200,000 and 75% of the balance; the parents split 1/8 of the balance. If one parent survives, they get 25% of the balance. When there is no surviving spouse, the descendants get everything. The decedent’s parents get half each if there is no spouse and no descendants. If none of these factors are in effect, it will go to grandparents or their descendants.
Not having a will can cause significant challenges
There is a tendency for younger people to downplay estate planning. They might be in good health and function under the impression that since they are just starting out in their adult life, it can wait.
Unfortunately, the unexpected can happen in an instant and people find that not being prepared is a big mistake. This is particularly true for professionals in their 20s and 30s who have young children. They need to name guardians and ensure their property goes where they want it to go. Having an estate plan is a wise step to avoid the pitfalls of dying intestate.