Individuals who have no heirs may be tempted to forgo creating an estate plan, thinking that it doesn’t matter who takes their property after death. However, failing to dictate who inherits from you merely allows the state to decide on your behalf. Individuals who you had never intended to acquire your assets may do so, undermining what you had hoped to achieve with the property you left behind. Even in the absence of heirs, it’s important to work with an attorney to create a personalized estate plan. Verras Law can help.
What Happens If There Is No Plan?
Dying without a last will and testament is known as dying intestate. Each year, countless individuals pass away without a will or any other estate planning document such as a trust. One reason that many of them neglect creating a plan is that they have no heirs. The idea is that estate plans are only useful when specific individuals will inherit your property; without these individuals in your life, the thinking goes, there is no need for a plan.
In reality, this does not prevent certain people from inheriting your assets. Rather, it merely delegates the decision to the state. Florida has established intestacy laws that designate who inherits your property when you fail to name your own heirs. There are some nuances, but the list generally goes in this order:
- Surviving spouse
- Children
- Parents
- Siblings
- Paternal/maternal family
And if none of these individuals are alive at the time of your death, then the state of Florida will inherit whatever you leave behind.
Options For Those Without Heirs
Most people would rather not have the state decide who takes their assets upon death. If you have no heirs, you have options for avoiding this outcome. You may wish to dispense with your property as follows:
- Relative or friend: If you have no heirs, you can select someone else to inherit instead. Perhaps you have a cousin or a close friend to whom you would like to leave all of your property after death. Be sure that this individual knows they are to inherit something from you since most individuals do not assume that non-relatives will leave them anything.
- Charitable remainder trusts: This type of irrevocable trust allows a donor to attain a charitable deduction immediately, based on the current value of the asset transferred to the trust. In exchange, the donor receives income from the trust. A chosen charity will receive whatever assets remaining after the donor dies.
- Donor-advised funds: The donor will make an irreversible and tax-deductible donation of cash, securities, or appreciated non-cash assets. This arrangement allows the donor to invest these funds for future growth and recommend grants to 501(c)(3) charities.
- Private foundations: Families and other individuals can establish these charitable organizations using an initial tax-deductible donation. The foundation is managed by trustees or a board of directors, who are often paid for their work. These advisers control how the assets are used. Grants can be made but they are not restricted to 501(c)(3) organizations.
Explore Your Options With an Estate Planning Attorney
Those who have no heirs still have a great opportunity to leave behind a lasting legacy with their property. The most important step you can take in planning your estate is to speak with an experienced attorney. Connect with the team at Verras Law today.