Understanding Inheritance Under Adult Children’s Wills in the United States
An estate refers to the sum total of a deceased person's personal and real property, including assets like bank accounts, real estate, and other valuable possessions. Unlike personal belongings, the estate typically includes assets held in the deceased person's name and not in a trust managed by another individual. Estate planning practices, such as wills and trusts, allow individuals to designate how their assets should be distributed after death, often in such a way that maximizes the value passed to their loved ones. This practice ensures that assets are transferred in a tax-efficient manner, and often tax-free for the majority of estates.
Dependents and Inheritance in the US
In the United States, survivors like spouses, partners, and children (including adult children) who are over the age of 62 or in other legally recognized categories may be entitled to inherit from an estate. However, the amount and nature of the inheritance can vary significantly. For instance, if a deceased person leaves behind significant assets, their adult children may receive a substantial portion. On the other hand, if the deceased person has little to no assets, the inheritance may be minimal or nonexistent. In other cases, the children may inherit nothing at all if there is no will in place and the state laws handle the distribution.
The Role of Wills in Estate Distribution
Wills play a crucial role in determining how an estate is distributed. If an individual dies with a valid will, the terms of the will dictate the distribution of the estate. However, the will can be contested by anyone who would otherwise inherit under intestate laws (laws that govern the distribution of an estate when there is no will). This contest can be based on a variety of reasons, such as alleged fraud, duress, or the belief that the will does not reflect the deceased's true intentions.
Intestate Laws and Distribution of Estate
If the deceased individual dies without a will, state intestate laws determine the distribution of the estate. In the United States, intestate succession laws vary by state. Generally, the surviving spouse and adult children are the primary beneficiaries. If the deceased individual had no spouse but left behind adult children, these children would typically be entitled to the entire estate. However, if the will does not fully specify the distribution, intestate laws will step in to determine who gets what. In such cases, children usually divide the assets equally, after all valid obligations, including probate costs and taxes, are taken care of.
The Implications of a Late Change of Will
It is also important to note that parents can change their wills at any time. Factors such as changing financial circumstances, changes in family dynamics, or new relationships can lead to changes in wills. Parents may choose to distribute assets in unexpected ways, such as leaving a small sum of money to each child and the rest to a charity, a pet, or a friend. This choice is a gift and not a legal obligation, and it is often driven by personal preferences and relationships.
Final Costs and Estate Distribution
A crucial consideration when discussing estate distribution is the payment of final costs. These costs can include funeral expenses, legal fees, and costs associated with probating the will. If the deceased required special care, these expenses can quickly deplete the estate. Therefore, it is important for adult children to understand that the ultimate share of assets they receive may be much less than initially anticipated due to these costs.