Creating a Will is one of the most important steps you can take to ensure your estate is managed according to your wishes. However, if you pass away without a Will or a Living Trust in Tennessee, your assets are distributed based on the state’s intestate succession laws. This process may not reflect your personal preferences, and it can lead to outcomes that leave your loved ones with unexpected challenges.
Understanding Tennessee’s Intestate Succession Laws
If you die intestate in Tennessee, the state applies a specific hierarchy to distribute your assets. Here’s how the succession works for common family situations:
- Spouse and Children: If you leave behind both a spouse and children, your assets are divided between them. In Tennessee, your spouse is entitled to at least one-third of the estate, with the remaining balance divided equally among your children.
- Spouse Only: If you pass away with only a spouse and no children, your spouse inherits the entire estate. This includes a spouse who you may no longer have a relationship with. If you meant to get divorced years ago but never made it official, this person is still your spouse who will inherit your assets.
- Children Only: If you leave behind children but no spouse, your estate is divided equally among your children. This includes children you may not know you have. If a child can prove you are biologically their parent, they will inherit. So will children who you do not have a relationship with.
- No Spouse or Children: If there’s no spouse or children, Tennessee law prioritizes other close relatives, such as parents first, then siblings, and finally extended family members, to inherit your assets.
If no close relatives are found, your estate could ultimately escheat, or revert, to the State of Tennessee treasury.
Complications with Intestate Succession
Dying without a Will can create additional stress for your family during an already difficult time. Here are some of the potential complications:
- Minor Children: Without a will, the court will appoint a guardian for your minor children, which may not align with your wishes. Additionally, the absence of a Living Trust could mean your children receive their inheritance outright at 18, regardless of their readiness to manage substantial assets. Or their inheritance could go to their guardians, who may not be fiscally responsible.
- Unmarried Partners: Tennessee intestate laws do not recognize unmarried partners. If you want your partner to inherit any portion of your estate, a Will or Living Trust is essential to ensure they’re included.
- Complex Family Dynamics: In blended families, intestate laws may not accommodate the unique needs and relationships among stepchildren, stepparents, or other blended family members. Only through a valid Will or Living Trust can you clearly establish your intentions and ensure that your wishes are honored.
Avoiding Probate Complications
If you die without a Will, your estate will more than likely go through the probate process, where the court appoints an administrator or personal representative to manage and distribute your assets according to Tennessee law. This process can be lengthy, complex, and costly, which might diminish the inheritance your loved ones will ultimately receive. Additionally, the probate process is public, meaning your estate’s details are accessible to anyone who is willing to pay for the photocopies of the probate file. We have seen financial predators use the probate record as the place to find their next victim, because the probate record contains the names and contact information of the beneficiaries.
Protecting Your Legacy with an Estate Plan
A well-drafted estate plan helps your family avoid the complexities and limitations of intestate succession. Here are steps to ensure your wishes are honored:
- Create a Will: Specify how you’d like your assets distributed and who you’d like to serve as the executor or personal representative of your estate. You can also name guardians for any minor children and establish specific inheritance plans for each family member.
- Consider a Living Trust: Trusts can help your family avoid the probate process entirely, protect your assets from certain taxes, and provide greater control over how and when your beneficiaries receive their inheritance.
- Update Your Beneficiary Designations: Assets like retirement accounts and life insurance policies typically transfer directly to the named beneficiaries, regardless of what’s stated in your Will. Ensure these designations are up to date to avoid unintended consequences.
- Establish Powers of Attorney: Designating someone to manage your financial and healthcare affairs if you’re unable to do so provides your family with clear guidance and helps avoid lengthy court proceedings if you’re ever incapacitated.
How Vermillion Law Can Help
At Vermillion Law, we help individuals and families protect their legacies through comprehensive estate planning. Whether you’re starting from scratch or updating an existing plan, we can help you create documents that reflect your wishes and protect your loved ones. Contact us today to ensure that your assets and your family are cared for according to your unique wishes.