Moneywise considers a 65-year-old with $3 million and no partner, children or close family. Without a plan, assets lacking beneficiaries could go to distant relatives under state law—or to the state if there are no heirs. Assets with named beneficiaries pass outside probate.
The inheritance order varies by state, but lawyers quoted by Moneywise said it generally starts with a spouse and children, then parents, siblings, nieces and nephews, and more distant relatives. Someone may inherit despite barely knowing the deceased.
An estate plan can direct assets to chosen friends or charities, name who will administer the estate, and designate someone to make decisions if the person becomes incapacitated. Without someone designated for that role, a court could appoint a decision-maker.
