What does 'intestate' mean?

The term 'intestate' refers to the situation where a person dies without having made a valid will. When someone passes away intestate, their assets and estate are distributed according to the state's intestacy laws, which dictate how the estate will be divided among heirs, typically favoring close relatives such as spouses and children. This legal framework is established to ensure that the deceased's property is allocated fairly according to familial relationships rather than according to the deceased's personal wishes, which would only be honored had a valid will existed. Understanding intestacy is crucial in fiduciary practice as it highlights the importance of estate planning to avoid complications for heirs and beneficiaries.