RBC’s Van Pate, a U.S. based wealth strategies consultant, is currently looking at the varying intestacy laws around the country and the potential concerns that arise if someone dies with significant assets but without a will.
According to an RBC study from earlier this year, only 54 percent of Americans have a will in place, which means a significant percentage of individuals will end up relying on the laws of their state when it comes to passing on assets. These laws can vary widely by state and often work in ways that are unexpected for the living family members.
If there is no written will that clarifies estate plans, state law will determine the outcome for survivors. Pate warns that some of the more unique laws around the country can change the outcome of an intended plan.
Pate suggests checking with a lawyer before relocating to a different state to ensure your will is in accordance with your estate wishes. This may include any additional properties included in your will such as vacation property or a business.
Property is not the only significant concern if there is no will. Blended families can impact the estate’s outcomes. While each state is required to recognize a will from another state, he suggests reviewing estate plans and wills in case changes are required.
In fact, communication is probably the secret weapon to ensuring a blended family maintains harmony, said Pate. "I like to think conversations happen not only before the marriage, but all the way through."
RBC Wealth Management is the wealth manager arm of Royal Bank of Canada, the second-largest bank in that country. Globally, RBC Wealth Management is the fifth-largest wealth manager by assets and it manages $702 billion in the U.S. and has 4,780 advisors and strategists across the country.