What is intestacy
Intestacy is a word used regularly in the will, estate and inheritance industry. The term intestacy widely refers to the state of a person’s estate who has died without making a valid will or other legal arrangement. Intestacy occurs where the person who has died effectively leaves an estate valued at more than the enforceable debt and funeral expenses. In the instance that intestacy is evident; it is advised that you seek the advice and guidance of a professional consultancy firm to inform you on the necessary steps to take.
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Intestacy explained
Intestacy is the official word used to describe the situation where a person dies leaving an estate worth more than the person’s liable debts and funeral expenses and where the person has also not left a will.
Intestacy can also apply where a person has left a will but which only accounts for some of their estate, leaving a section of their estate as ‘intestate estate’.
In order to divide the intestate estate the rules of succession apply where the deceased person was domiciled. Each country has their own rules and guidelines applied to wills and intestate estates and in some countries even where a will has been drafted, claims can still be made for the estate. This is regarded as forced heirship and many wealthy individuals will deposit their assets in an offshore trust n order to avoid forced heirship rules.
The relevant act in the deceased country of domicile will apply and will provide rules for distribution of the property to the relevant people For example, surviving children and spouse of the deceased will mean the estate (if under a certain value) will be passed onto the spouse. Where the deceased has no surviving spouse or children the estate will be passed to the surviving close relatives such as the deceased sibling or parents.
Where the intestate estate is valued at a very high amount there are different terms and conditions that apply, for instance, the surviving spouse will not receive the entire estate but other blood relatives will also receive a share. In countries such as theUSA, each state employs their own rules for intestate estates and so it is essential that you seek guidance from a professional consultancy firm to understand the relevant rules and laws your country adopts.
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