Many married couples in Colorado think that if one of them dies without a will, the other will inherit everything from the deceased spouse. That is only true in Alaska if neither spouse has children from another relationship.
Dying without a will is called dying "intestate". When a person dies without a will, state law determines who inherits. Those laws are sometimes referred to as the rules of "intestate succession". The rules of intestate succession vary widely and the results in some cases can be truly surprising.
Take for example the "new normal" blended family family consisting of mom, dad and a couple of minor children of the marriage also a child each from previous relationships. Many married couples under these circumstances would want the spouse to inherit 100% because he or she is going to need all of the deceased spouse's resources (and then some, usually) to raise the children to maturity.
However, that would not be the case in Colorado (see chart below). In Colorado, unless the deceased spouse had a will that provided otherwise (or did a trust-based estate plan), the surviving spouse would NOT inherit 100% of the decedent's estate. The children of the deceased spouse would inherit some portion (see chart below). That could leave the surviving spouse seriously strapped for money.
The funds inherited by the children usually end up in some kind of court-supervised, blocked account. The intent is to keep the children's inheritance safe and intact until they reach the age of majority. If the surviving spouse wants access to any of those funds, he or she must petition the court for permission. The custodian of the account (who may or may not be the surviving spouse) must provide regular accountings to the court.
If the deceased spouse had no children but one or both parents still living, the deceased spouse's parents would get a large portion of his or her estate (see chart below). This could be the case with many younger married couples.
If you want to make things easy on your surviving spouse and ensure that he or she inherits everything, you might need a will or a trust to accomplish that, depending on where you live and your individual circumstances.
Take a look at the chart below for a sampling of the laws of intestate succession in Colorado for the disposition of estates when there is a surviving spouse. You might find the result surprising.
If you die with Here's Who Inherits in Colorado
Spouse but no descendants or parents Spouse inherits everything
Spouse and descendants from you and that spouse,
and the spouse has no other descendants Spouse inherits everything
Spouse and descendants from you and that spouse
and the spouse has other descendants from
another relationship First $225,000 and 1/2 of the balance to spouse; remainder to your descendants
Spouse and descendants from you and someone
other than spouse First $150,000 and 1/2 of the balance to spouse; remainder to your descendants
Spouse and parents First $300,000 and 3/4 of the balance to spouse; remainder to your parents
If the result does not work for you, give us a call at 931-250-8585. We can help you get your affairs in order to achieve the result that you desire.