On Valentine’s Day, we think about our loved ones. We naturally want to benefit loved ones upon death. However, if you die without a Will, or intestate, the California Probate Code specifies who receives your estate – not you. Your loved one may not be on the Probate Code’s list.
So who’s on list? Certainly, your spouse is on the list. Thereafter, under the laws of intestate succession, your heirs, in order of priority, are first children, then their issue (i.e. your grandchildren), then your parents, then issue of your parents (i.e. your siblings, and their children), and then issue of your grandparents (i.e. your cousins, and their children). Only blood relatives make the list. Girlfriends, boyfriends, life partners and friends are not on the list.
For some, their significant others and friends are their “chosen” family and are more important in their lives than their blood related family. To get around the Probate Code and ensure your significant others or friends receive your estate, you need at least a Will to specify who will receive your estate. For a Will to be effective, though, your estate must pass through probate.
To avoid probate, a Trust is often a better choice. Sure, with certain assets, like IRA’s, retirement and pension plans, that pass by beneficiary designation, you can name the beneficiary on a beneficiary designation form. You can hold assets as joint tenants. The laws of intestate succession do not apply to assets where a beneficiary is named or to joint tenancy assets.
What about your house? A Trust is the best way to leave your house to your loved ones, without joint tenancy. To benefit your “chosen” family, you need a Will, or better yet, a Trust.