How Estate Property Gets Divided
The simple way to make out a will is to leave a simple request that your property be equally divided between certain people, such as your children. While that way of dividing an estate in a will certainly seems fair and is easily understood, there can be issues when it comes to handling property that is not that easy to divide. Read on to learn more.
Per Stirpes Clauses
In legal terms, per stirpes means not only that the estate is to be divided equally among beneficiaries, but that if a said beneficiary has preceded the deceased in death then the inheritance goes to the children of that beneficiary. For example, if you left your estate to your adult children per stirpes and if one of those children died before you did, the grandchildren of the deceased will receive that child's share. Without a per stirpes clause, the surviving adult children would take a larger share of the estate and the grandchildren might get nothing.
A Word About Spouses
In most states, the estate automatically goes to the spouse of the deceased if there is no will. To further protect the surviving spouse, wills that leave the spouse out entirely may not be valid. When a per stirpes clause is present, it only applies if the spouse is dead or is an ex-spouse.
Dividing Property
If both parents have passed away, a per stirpes clause prevails. No specific names are needed since the provision applies to all legal offspring of the deceased. The property is divided as follows:
1. All liquid property is divided equally. This includes cash, funds in checking and savings accounts, stocks and bonds, and so on.
2. Hard property, such as homes and cars, must be dealt with differently. In all cases, the beneficiaries must agree unanimously about how to handle the inheritance. There are a few options:
- They can sell and divide the cash equally.
- Trades can be made between the parties (for example, if one beneficiary wants the real estate, they might pay the other beneficiaries for their share using a liquid asset.).
- They can decide to own the asset equally (this might be a good idea for things like vacation homes or homes that can be rented out to provide income for everyone).
All property belonging to the estate must go through probate. Probate requires that a full accounting of all property be made using an inventory and professional appraisals. This helps ensure that each beneficiary gets an equal share. To find out more about this type of will provision, speak to an estate or probate attorney.
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