Estate Planning

Do you need a will? (Continued)

If A's wife had predeceased him, all of the assets in the estate would have been divided into four equal shares and would have been distributed to the children and grandchildren in the same manner set out above. If there is no surviving spouse and no surviving lineal descendants, the property of the decedent will be distributed to the surviving parents, or, if there are no surviving parents, then to the brothers and sisters of the deceased. Ultimately, if there are no surviving heirs in the categories provided by law, the property is distributed to the Board of Education in the county in which the decedent resided prior to death for use in the public school system. However, if the decedent was a recipient of long-term benefits under the Maryland Medical Assistance Program at the time of his or her death, the property will be distributed to the Department of Health and Mental Hygiene.

An important distinction to keep in mind is that not all property in which the decedent had an interest will necessarily be distributed according to the provisions of a will. For example, a decedent might have a joint bank account titled in his name and the name of his surviving spouse, with rights of survivorship. The balance on deposit at date of death passes directly to the surviving spouse. The proceeds of a life insurance policy, which the decedent has designated to be payable to a beneficiary or several beneficiaries upon death, are payable directly to the designated beneficiaries. In other words, the instrument itself, i.e., the bank account or the life insurance policy, determines who will receive the proceeds upon the death of the decedent. If an individual desires these assets to become a part of his estate and therefore subject to distribution according to the terms of his or her will, the bank account woul have to be titled in the decedent's name alone, and the decedent's estate would have to be named as the beneficiary of the life insurance policy.