A Free, Pre-fab Estate Plan...But Do You Want It?

"Give a man a free hand, and he’ll run it all over you.”

- Mae West

Lawyers often quote statistics about the number of people who die without an estate plan. Every statistic they quote you is false. That’s right. False. Even if you never write a will, you are guaranteed to have a free, no-hassles, pre-fab estate plan at your death. This basic estate plan is created for you by state law and dictates how your property passes if you choose not to appoint your heirs. We all know the best things in life are free, but what about at death?

Married People: If you die without a will in Iowa, your spouse gets everything, the whole kit and caboodle. If you and your spouse have kids, your spouse still gets the whole works. If you have children from outside your marriage, the rules are a bit more complicated. Your spouse gets either $50,000 or one-half of the total estate (generally speaking). If you have less than $50,000 total when you die, your spouse gets everything.

Unmarried People: The rules get even more complicated for people who are single when they die:

1. First, your estate goes to your kids or grandkids.
2. If you have no kids or your kids died without giving you grandkids, your estate goes to your parents. If one of your parents is dead, your other parent gets your whole estate.
3. If 1 & 2 don’t apply, half of your estate goes to your mother’s children and half goes to your father’s children. Your half siblings get the same share as your full siblings.
4. If you have no half-siblings and no full-siblings living when you die, then your estate passes to your grandparents. If your grandparents have died before you, your estate gets divided up amongst their children as follows:
   • Maternal grandmother’s children get one-fourth
   • Maternal grandfather’s children get one-fourth
   • Paternal grandmother’s children get one-fourth
   • Paternal grandfather’s children get one-fourth
What this means is that your mom’s half-brother could inherit 25% of your estate. Just like under number 3, if your paternal grandfather died without any living children, that one-fourth goes to his wife’s kids. If both of your dad’s parents die, your mom’s parents split the whole estate between them. Finally, if only one grandparent lives longer than you, that grandparent’s children get your whole estate. Even your Betty Boop memorabilia collection.
5. If 1-4 don’t dispose of your estate (i.e. your grandchildren, children, siblings, parents, aunts, uncles, and grandparents all die before you), your great-grandparents and their children get your estate.
6. If all your great-grandparents, great-aunts, great-uncles, grandparents, aunts, uncles, parents, siblings, children, and grandchildren die before you, then your estate goes to your spouse’s kids, including your stepkids.
7. If you have no relatives that live longer than you, the state of Iowa gets your property. This is called “escheat.” Sounds about right, doesn’t it? The state cheats and gets all your stuff?

You’re probably totally lost. What if your half-sister is a surrogate mother for a couple from New York? Could that child inherit your whole estate? What if you donate eggs or semen to a genetic bank? Could the child born as a result of that process inherit from your estate?

Don’t leave it to the Iowa legislature to decide. Prepare a will and preserve your estate for the ones you love.

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Lawyer Joke of the Day:

Two prisoners are talking about their crimes:

George: "I robbed a bank, and they gave me 20 years"
Herman: "Hmm. I killed a man, and I'm here for 3 days"
George: "*WHAT*??? I rob a bank and get 20 years; you kill a man and get 3 days???"
Herman: "Yeah, it was a lawyer."