Well, sort of. To put it another way, the Connecticut legislature has a “default” last will and testament ready and waiting for you in case you happen to pass away without one. That’s arguably a good thing since 54% of U.S. adults don’t have a will. This default approach to distributing your estate is known as the “intestacy laws”.
The problem is that the default will that the State drafted for you is a little odd.
If you pass away without a will and you’re survived by a spouse and you have no kids or surviving parents, then your entire estate goes to your spouse, which is fine. That makes perfect sense. But then the intestacy laws get a little strange for the following two (very common) scenarios:
If you are survived by a spouse and parents, but no children: The first $100,000 of your estate goes to your spouse plus 75% of whatever is left. The remaining 25% goes to your parents.
If you are survived by a spouse and children of your current marriage: The first $100,000 and 50% of the rest of your estate goes to your spouse. The remaining 50% goes equally among your children.
Theoretically, anyway, these laws are supposed to reflect how your average Nutmegger would want his estate to be distributed if he never got around to signing a will. However, over the past 25 years I’ve drafted a lot of wills for clients who fit into one of the two above categories and not once has a married client with children told me that he would like the first $100,000 and half of his estate to go to his spouse and the rest to the kids. As you can imagine, in the vast majority of cases where there are no extraordinary circumstances, everything simply goes to the surviving spouse, and nothing goes to the kids. The children don’t typically get anything until both spouses pass away. Nor have I ever had a married client without kids sign a will saying 25% of the estate goes to her parents, particularly if they are elderly and may need a nursing home placement in the foreseeable future.
Let me throw in one more tidbit to further complicate things: These intestacy laws will only apply to some of your assets. They do not apply to any accounts with beneficiary designations since those funds automatically go straight to the designated beneficiaries upon your death. Nor do they apply to any jointly owned assets, since your name is simply removed from those assets when you die. So, in the end, without a comprehensive plan in place, upon death your assets will essentially go flying off in all different directions.
So, if you’re in the majority and you don’t have a last will and testament yet, then make sure to thank the State of Connecticut for writing one for you. Just don’t expect it to have any resemblance to your actual wishes.
DISCLAIMER: This blog does not offer legal advice, nor does it create an attorney-client relationship. If you need legal advice, consult with a lawyer instead of a blog.
