Your Will: Don’t Leave This World Without One
Dying without a will is known as dying intestate, which basically means that your property will pass in accordance with state laws. The due diligence of a CPA adviser is so important when reviewing estate documents and beneficiary designations.
By Kevin P. Brosious, CPA/PFS, CFP, CGMA
Dying without a will is known as dying intestate, which basically means that your property will pass in accordance with state laws. Pennsylvania has a set of intestate laws that guide the disposition of a deceased’s estate that is not directed by a will or other beneficiary designations. A determination on the assets will depend upon the relationship of a person to the deceased.
Even though a will is an important estate document to have in place, it should be noted up front that, in most cases, the beneficiary designations on ERISA accounts, IRAs, annuities, and life insurance will trump anything to the contrary that is written in the will. For example, if a client died and still had his or her ex-spouse listed as a beneficiary on a 401(k) account – even though they may have indicated otherwise in their will – it is likely that the ex-spouse would inherit those assets. From this, you can see why the due diligence of a CPA adviser is so important when reviewing estate documents and beneficiary designations.
The intestate laws in most states favor spouses and children, and Pennsylvania intestate laws are no exception. See the following examples.
| If the decedent is survived by a spouse, but has no children and no surviving parents: | ||
| Spouse | Children | Parent(s) |
| Yes | None | Deceased |
| 100% | ||
| If the decedent has a surviving spouse and surviving parents, but no children: | ||
| Spouse | Children | Parent(s) |
| Yes | None | Yes |
| $30,000 + | ||
| ½ remaining estate | ½ remaining estate | |
| If the decedent has a surviving spouse and surviving children (all of whom are also the spouse’s children): | ||
| Spouse | Children | Parent(s) |
| Yes | Yes | Deceased or living |
| $30,000 + | ||
| ½ remaining estate | ½ remaining estate | No share of estate |
| If the decedent has a surviving spouse and surviving children (spouse is not the parent of the surviving children): | ||
| Spouse | Children | Parent(s) |
| Yes | Yes | Deceased or living |
| ½ remaining estate | ½ remaining estate | No share of estate |
| If the decedent’s spouse is deceased, parents are either living or deceased, and decedent has surviving children: | ||
| Spouse | Children | Parent(s) |
| Deceased | Yes | Deceased or living |
| 100% | No share of estate | |
| If the decedent’s spouse is deceased, parents are living, and decedent has no surviving children: | ||
| Spouse | Children | Parent(s) |
| Deceased | None | 100% |
If the decedent has living siblings but no living spouse, children, or parents, then the decedent’s siblings inherit all estate assets.
So, the examples above would be the “will” that Pennsylvania gives you. If that sounds good to you, there is nothing more for you to do. However, if this isn’t exactly what you had in mind, or if you also want to have some control over your end-of-life decisions (such as through a living will), then you should see a lawyer and create a will that best reflects your wishes.
Kevin P. Brosious, CPA/PFS, CFP, CGMA, is the founder and president of Wealth Management Inc. in Allentown, Pa., an independent fee-only financial planning and registered investment advisory firm. Brosious is an active member of both the PICPA and the American Institute of CPAs.
PICPA Staff Contributors
Disclaimer
Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of PICPA officers or members. The information contained in herein does not constitute accounting, legal, or professional advice. For professional advice, please engage or consult a qualified professional.
