OVERVIEW
Everyone has a will—either by design or by default. If you do not have a will and live in Mississippi, the state legislature has created one for you through intestacy laws. This article examines the default estate distribution plan and why many people choose to create their own will instead of relying on state law.
DYING WITHOUT A WILL
If you die without a will, you die intestate, and your property will be distributed according to state law.
Mississippi’s Intestate Distribution Plan:
- Your estate will be divided equally among your spouse and children.
- If you have two children, your spouse would receive one-third of your estate.
- Your spouse’s share will be paid outright.
- Your children’s share will also be paid outright.
- If a child is under 21, their share will be held under court supervision until they turn 21.
- At age 21, the child receives their full inheritance, regardless of financial maturity.
Other states have similar intestacy laws, but dying without a will can create additional complications:
- The probate judge will appoint an administrator for your estate. This may not be the person you would have chosen.
- Legal and accounting fees will likely increase. The court may also require a fiduciary bond, adding to estate costs.
- If both you and your spouse die at the same time, the probate judge will appoint a guardian for your children. This could result in a legal battle among family members.
According to Caring.com’s 2024 Wills and Estate Planning Study, only 32% of Americans have a will, meaning that 68% have no plan in place, leaving asset distribution to state law. Despite the certainty of death, many people delay estate planning, often causing unintended financial and legal consequences for their families.¹
CREATING A WILL
A will provides control over the distribution of your assets and offers several advantages:
- Flexibility – A will is revocable and can be updated as your family or financial situation changes.
- Guardian for Children – You can name a guardian to care for minor children if your spouse does not survive you.
- Executor Selection – You can choose a trusted executor to manage and distribute your estate.
- Trust Provisions – A will allows you to establish trusts for your spouse and children, protecting assets from creditors and financial mismanagement.
- Deferred Distributions – You can delay inheritance payments until children reach a certain age (e.g., 30, 35, 40).
- Emotional Relief – Having an estate plan provides peace of mind, ensuring your wishes are carried out.
OTHER IMPORTANT LEGAL DOCUMENTS
In addition to a will, you should consider creating a durable power of attorney and an advanced healthcare directive.
Durable Power of Attorney
A durable power of attorney allows one person (the principal) to authorize another (the agent) to act on their behalf. The “durable” feature ensures the document remains in effect even if the principal becomes incapacitated.
This document allows an agent to:
- Manage financial affairs if the principal becomes disabled.
- Pay bills and handle legal matters without court supervision.
- Ensure continuity of asset management without requiring conservatorship proceedings.
Advanced Healthcare Directive
An advanced healthcare directive combines two key legal documents:
- Living Will
- Also known as a Directive to Physicians.
- Allows individuals to outline their medical treatment preferences in case of terminal illness or incapacity.
- Ensures no unwanted life-sustaining treatments are administered.
- Durable Power of Attorney for Healthcare
- Also called a healthcare proxy.
- Authorizes a trusted person to make medical decisions on behalf of the principal.
- Provides guidance on treatments and end-of-life care when the individual cannot communicate their wishes.
CONCLUSION
If you do not have a will, durable power of attorney, or advanced healthcare directive, it may be time to consult an attorney to create these essential documents.
Without a will, state intestacy laws will determine how your assets are distributed—potentially in ways you would not prefer. Without an advanced healthcare directive, your medical care decisions may be left to family members or the courts.
Having these documents in place before they are needed will provide peace of mind for you and your family, ensuring your assets, healthcare, and loved ones are taken care of according to your wishes.
This article is strictly for informational purposes and is not intended as an offer or solicitation for any transaction. The information provided does not constitute legal, tax, or investment advice. For professional guidance, consult an attorney or tax professional.
Investment advisory services are offered through CWM, LLC, an SEC Registered Investment Advisor. Carson Partners, a division of CWM, LLC, is a nationwide partnership of advisors. The views in this article do not necessarily represent those of CWM, LLC. Information is based on sources believed to be reliable; however, accuracy cannot be guaranteed.
Footnote
¹ Caring.com. (2024). Wills and Estate Planning Study. Retrieved from Caring.com
