What happens to your assets when your spouse dies?

Your marriage or permanent relationship affects how your assets will be dealt with after your death. More than simply drafting a will, it is essential to understand how your marital property regime will affect the way your assets will be distributed after your death.

How does a surviving spouse inherit an estate?

Some states’ laws provide that a surviving spouse automatically inherits all of the assets whether or not the couple had children together. In other states, the surviving spouse only inherits some of the estate and surviving children inherit the remainder.

What are the rights of the surviving spouse?

The surviving spouse does has the right to inherit the unused portion of the deceased spouse’s unused estate tax exemption amount. Further, the surviving spouse generally does not pay any estate taxes regardless of the amount of wealth transferred upon death.

Can a surviving spouse claim maintenance from a deceased estate?

In instances where the first-dying spouse has not been adequately provided for the surviving spouse, the surviving spouse is entitled to claim from the deceased estate for maintenance in terms of the Maintenance of Surviving Spouses Act.

If you have a spouse, he or she will inherit some or all of your assets after you die. Even if you have a will or trust in place naming other beneficiaries, intestacy laws in many states protect disinherited spouses, allowing the spouse to elect against the will and instead take a certain share of the estate, as specified by state statute.

What are the rights of the surviving spouse of a deceased spouse?

A surviving spouse in such a state has protection from being completely disinherited. Through what’s known as elective share, a surviving spouse has a right to claim a portion of the deceased spouse’s estate regardless of what a will may state. Typically, this share is anywhere between one-third to one-half, depending on state law.

What happens to my assets if I die without a will?

If you die without a valid will, your state’s intestacy laws determine the distribution of probate assets. Some states’ laws provide that a surviving spouse automatically inherits all of the assets whether or not the couple had children together.

What are the assets of a deceased person?

Assets are any items or objects owned by the deceased that have value. Obvious examples are bank accounts, property, shares and life insurance policies. However, items such as cars, boats, paintings and even animals can count as assets and would need to be dealt with as part of the Estate.

Can a former spouse Lodge a claim against an estate?

If no such provision is made then your former spouse will be entitled to lodge a claim against your estate as a creditor and same will have to be settled from your assets thereby reducing the balance which can be awarded to your nominated heirs.

What happens if there are no assets in Your Name?

A similar situation is where there are no assets in the deceased’s name, but they are a Beneficiary of another Estate which was not finalised before their death. For example, this may be their mother’s Estate.

What are assets that are not subject to probate?

Assets that aren’t subject to probate are commonly referred to as “non-probate” assets, and typically include a designated beneficiary or rights of survivorship. Some common examples of non-probate assets include: Bank and brokerage accounts with a payable-on-death or transfer-on-death beneficiary Retirement accounts (IRA, 401k, etc.)

What happens to joint bank account if spouse dies?

If the couple operates one joint account, the account will be frozen and the surviving spouse will be required to open a new bank account in her name. Once appointed, the executor can apply to the Master to release funds for the maintenance of the surviving spouse.

What happens to your estate if you are married out of community of property?

As there is no accrual, each party is able to distribute their assets according to their wishes. If you are married out of community of property excluding the accrual, then only your spouse’s estate will be wound up.