If you haven’t created a Last Will and Testament or another estate document such as a Living Trust, to settle your affairs, you should be aware of what will happen to your estate when you pass away. The good news is that, if you have not done a will for yourself, the state of Mississippi has done one for you. The bad news is, the state’s plan may or may not be the same as your plan. When you don’t have a Will, state laws will name your administrator, your heirs and even the guardian to your children.

Naming an Executor

State law determines who may act as an administrator for an intestate estate. The list of possible administrators starts with the decedent’s spouse and moves to adult children, parents and siblings next. Keep in mind, an administrator chosen by law may not be the person you feel would be best for the job. If you execute a will, you are able to pick the person or people to administer your estate.

Naming Heirs

If you don’t have a Will or other estate plan, state laws will decide the rightful heirs to all of your property. Mississippi law gives your property to your spouse and children equally. If none of those heirs exist, then your executor must move through the ranks of parents, grandchildren or even your siblings, nieces and nephews.

When the law names heirs to your estate, some loved ones may be excluded and some may inherit more than others. Intestacy often causes bickering and hard feelings among heirs.

Naming a Guardian and Setting Aside Funds for your Children

If you don’t create a Will, you have no legal way to name a guardian for your underage children. When you do not name a guardian, a court of law will decide the best person for the job. The court must focus on your children’s best interest. While this is good to know, it is always better to have a say in who will raise your children if you cannot. After all, you will know your children’s needs better than a judge may.

Likewise, if you do not have a Will, the Court will appoint a guardian over your property for the benefit of your children. The Court will then oversee the use of those guardianship funds, requiring annual accountings and motions for exceptional expenditures. Additionally, the Court will oversee how the money is invested. Usually this means federally insured bank accounts, which are safe, but which also pay very low rates of interest. If you do a will, you can create a trust for the benefit of your children, and can appoint who will oversee that trust and give them the power to invest in appropriate investments that will bring a market rate of return, without all of the unnecessary expense and delays of court oversight.

Tags: Estate Planning, intestate, Probate