Estate planning is the process of accumulating and disposing of wealth before death of individual of group of owner known as estate owner including married couple. It aims is to maximize the wealth of the estate owner. The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes. Intestacy Laws id defined as a person dying without writing a will and Then the assets are frozen, which may not be the same as the place of habitation at the time of death
I. Definition
Intestacy law is a law that govern the estate of a person who dies owning property greater than the sum of his or her enforceable debts and funeral expenses without having made a valid will.
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II. How it works
Since there are no will after his or her death, the deceased's property, including personal belongings, will be administered by a personal representative appointed by the Probate Registry according to strict rules of priority and the rules of succession of the person's place of habitual residence of the State or Province Act will apply.
Normally in this case, the spouse will not receive the entire estate. The estate generally is distributed as follow
I) What the spouse get if the other spouse dies with no will
1. All property that have been registered to a survivor ship will pass to the survivor, such as the deceased's share in the jointly owned family home.
2. All property passing to them under the terms of a registered plan such as IRA, 401K, RRSP, registered annuity, etc.
3. Life insurance that spouse is the designated beneficiary.
4. Non registered segregated funds that are purchased from a life insurance policy and the survivor spouse is the designated beneficiary.
3. A statutory legacy of a fixed sum under the Administration of Estate Art which may difference in the States or Provinces
4. A life interest in half of the remaining estate.
II) What the children get
The children of the deceased and the survivor spouse will be entitled to half of the estate remaining after paying all the debts, fee and funeral expenses.
III. If the decreased dies and with no children
If there are no children to share half of the remain estate then the more distant relatives of the deceased will be entitled to half of the estate automatically.
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