Dying Without a Will in New York: A Guide to NY Rules of Distribution
If your domicile and property are located in New York and you pass away without a will (intestate), the assets that you leave behind that do not pass automatically as joint accounts or by beneficiary designation are subject to the rules of distribution found in New York Consolidated Laws, Estates, Powers, and Trusts Law – EPT 4-1.1 and 5-3.1. The Surrogate’s Court in the proper county will appoint an administrator who will collect the assets, pay any remaining debts, and distribute the assets of your estate according to these rules.
Leaving Behind a Surviving Spouse
If you pass away and leave behind a surviving spouse, that spouse is given priority in some of the assets that you have left behind. This property is known as exempt property enumerated in EPT 5-3.1 and consists of:
- One motor vehicle not exceeding $25,000 in value. If the vehicle exceeds $25,000 in value, the spouse can choose to receive cash for the value up to $25,000 or to pay the estate for the amount over the limit;
- Cash and cash equivalents up to a value of $25,000. This consists of bank accounts, certificates of deposit, marketable securities and the like. This exemption is limited to the amount remaining after taking into account the costs of funeral expenses;
- Up to $20,000 for household goods including furniture, musical instruments, and decedent’ clothing;
- Up to $2,500 worth of a family bible, pictures, and tapes;
- Up to $20,000 value in domestic animals (with food for 60 days, a tractor or lawn mower, and farm machinery.
After taking the exemption which automatically passes to the surviving spouse, the spouse receives an intestate share of the remaining assets of the estate. This share will depend on if the decedent had children in their lifetime or not.
If a decedent leaves behind a surviving spouse and no children (or descendents of such), the entire estate will pass to the surviving spouse.
If the decedent leaves behind a surviving spouse and children (or descendants of) the spouse will receive $50,000 plus 1/2 of the remaining assets.
Any amount of the estate that passes to descendents of the deceased in intestacy passes by “representation”. This means that any predeceased beneficiaries’ shares are divided equally at that generation. For example, if a deceased had three children ( A, B, and C) and B and C passed away before the deceased who’s assets are being divided, 1/3 of the distributed estate will go to A and 2/3s will be divided amongst the children of B and C equally no matter how many children each had.
Passing Without a Surviving Spouse
If the deceased leaves behind descendents (children, grandchildren, etc.) the estate will pass down by representation as examples above.
If the deceased had no children in their life or no descendents remain and they leave behind a surviving parent (or parents), the whole estate will pass to the surviving parents.
If no descendents, and no surviving parents, to the siblings of the deceased by representation similar to the rules that apply under descendent distribution.
There are a couple of points worth mentioning when in comes to distribution of the estate: (1). Adopted and half-blood relatives count as if they were whole blood; (2) there are certain rules where spouses or parents who abandoned the deceased will not be allowed to inherit (specifics are outside the scope of this article); (3) children conceived before but born after death are treated as if they were born during the deceased’s lifetime.
Importance of a Will
Under New York State laws, the rules of intestate distribution and appointment of the estate administrator may be contrary to your desires when you pass. The Surragate’s Court will follow a specific order in appointing the administrator of your estate and that administrator will follow the rules of distribution as outlined above. Depending on the size of the estate you leave behind, that administrator may be required to purchase a bond that will protect the distributes of the estate. If you want to pick who will be in charge of your estate, where the assets will go, or waive the requirement of a bond, you may want to consider a will. Additionally, there may be some individual that you wish to disinherit for one reason or another.
Contact us today for a consultation on your estate needs.