What does intestate mean in relation to estate planning?

Intestate refers to the condition of an individual who passes away without a valid will in place. In the context of estate planning, when someone dies intestate, their assets and property will be distributed according to the intestacy laws of the state in which they resided. This typically means that the state will decide how the deceased's estate is managed and to whom the assets are distributed, rather than following any specific wishes or directives of the deceased, which would typically be outlined in a will.

Having a written will provides a clear outline of how a person's assets and liabilities should be handled upon their death, allowing for specific bequests and instructions. Conversely, without a will, the distribution takes a more generalized approach based on legal statutes governing estate distribution, which may not align with the deceased’s intentions. This highlights the importance of proper estate planning to ensure one's wishes are fulfilled after death.