Have you ever wondered what happens if you die without a valid estate plan? In legal terms, dying without a plan in place is called intestacy. Each state has its own set of intestacy laws that determine who inherits your assets. While intestate rules may vary slightly from state to state, they are intended to mirror what most people would want based on given family circumstances.
In Wisconsin, your spouse and children have priority status. If you are married and have no children, or if all of your children are shared with your spouse, your spouse inherits your entire estate. If you’re married but have children that aren’t shared with your spouse, then your spouse receives half your estate while your children share the other half equally by right of representation. If you’re unmarried but have children, your children inherit your entire estate equally by right of representation. If you’re unmarried with no children, then your next of kin inherit your estate.
Right of representation just means that a deceased person’s descendants share equally in the share that would have gone to that person had they been alive. For example, if your child dies before you but has surviving children of their own, then your child’s share is split equally between their children (your grandchildren).
It’s not uncommon to have different preferences than what “most” people would want, though. Some common examples are: (1) Blended family situations, which are near impossible to generalize; (2) Long-term relationships where partners choose not to get married but would prefer that their partner inherit their estate (Wisconsin law doesn’t recognize common law marriage); and (3) Early adulthood, where single young adults may prefer that their siblings, who may have young children, inherit instead of their parents, who may be empty nesters with a lifetime of retirement saving behind them.
Relying on intestate succession rules is just one reason to have a personalized estate plan created. Don’t leave your estate administration up to the state. Make your wishes known and protect your legacy with a clear estate plan unique to your family.