A scenario clients present to me a lot is “I am not married, I do not have any children, no aunts and uncles, and my parents have passed away. What happens to my estate when I pass away?” There is one answer to this scenario and it is one that every client hates to hear. The State of New Jersey becomes the heir of your estate.
Under the Uniform Probate Code (“UPC”) Section 2-105, “If there is no taker under the provisions of this Article, the intestate estate passes to the state.” The UPC has outlined that the very first heir is a spouse; followed by descendants, parents, first line collaterals, grandparents, second line collaterals, and certain stepchildren. The UPC also wants to avoid what is known as “Laughing heirs.” Laughing heirs are descendants that you never knew existed and are so far removed from the decedent, may have never known the decedent.
After going through each and every possible heir and not finding one as outlined in the UPC, the State has established its stake in the estate.
This scenario can be more common than people think. During the initial consultation I ask those without a Will, “How do you feel with the State of New Jersey receiving everything you own?” The answers are always funny as no one wants the State to receive anymore than has already been taken from them through taxes. Therefore, clients begin to understand the importance of an estate plan.
If you are in the scenario of having no one to leave your estate to, there is always the option of leaving your estate to a non-profit organization or to a cause that is close to you.
Most people do not want the State to become the heir to their estate and neither should you. Avoid this scenario by drafting an estate plan.