Who Are Your Heirs as Defined in California Law and Why Does It Matter (Part 2 of 3)?

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If you live in California, then your heirs are defined by California law.  Your heirs are the people who will receive your assets after your death if you haven’t specified that while you were alive through a trust, will, etc.  Here, in the prior post, and in the next post, we discuss distribution of your assets at your death in that situation  This is the second post in a three-post series.

In the first post we discussed distribution of your assets at your death when you are married at death and have not specified the people who will receive your assets after your death.  In that case you are said to be intestate.

The word “intestate” technically means “without a will”.  There are many ways to specify the people to receive your assets after your death.  I have already discussed these options in prior posts of this blog.  We will discuss them in the third post of this series and in a later blog post.

All discussion here about marital assets in California applies to spouses of a married couple and also applies to the domestic partners of a registered domestic partnership.  Trying to keep things simple, in this blog post I will use language regarding married couples and not registered domestic partnerships.  All of that language applies to both.

Also community property and quasi-community property are treated exactly the same according to California law.  In this blog post I will use language regarding community property and not regarding quasi-community property.  All of that language applies to both.

You’re Widowed at Death (to Your Deceased Spouse’s Relatives, Sometimes)

The relatives of your deceased spouse may receive some of your assets if you die:

  1. Not married;
  2. With your most recent marriage having ended by the death of your spouse, and
  3. Having no living children or grandchildren.

They will receive only the portion of your assets that are “attributable to” your deceased spouse.  We will define that here.

Because there is no current marriage, there is no distinction of assets as community property, quasi-community property, or separate property as of the death of the surviving spouse.  This distinction, however, is important when determining the portion of your assets attributable to your deceased spouse.

The portion of the surviving spouse’s assets attributable to her deceased spouse is:

  1. Half of the community property assets that existed when the deceased spouse died. Conceptually, that is the surviving spouse’s half of the community property assets at that time.
  2. Half of the community property assets that existed when the deceased spouse died that the surviving spouse received from the deceased spouse either by gift or inheritance. Conceptually, that is half of the assets that were in the deceased spouse’s half of the community property until he transferred it to the surviving spouse.  The transfer could have been during the deceased spouse’s life or at his death.
  3. The total value of community property that the deceased spouse had the power to control at death and that the surviving spouse received at the death of the deceased spouse automatically based on surviving the deceased spouse. Conceptually, that is all of the value of an asset titled in the name of the deceased spouse (alone or with others) that the surviving spouse received at the death of the deceased spouse based on the surviving spouse also being a joint owner of the asset.  It also is the value of an asset titled in the name of the deceased spouse that the surviving spouse received at the death of the deceased spouse based on the surviving spouse being designated as the death beneficiary of the asset.
  4. All three of the foregoing items of this list as to quasi-community property; and
  5. Items 2 and 3 of this list as to separate property of the deceased spouse.

So who will receive all of the assets attributable to the deceased spouse when the surviving spouse dies (1) not married, (2) with her most recent marriage having ended by the death of her spouse, and (3) having no living children or grandchildren?  That depends on the following factors:

  1. The types of assets;
  2. When the deceased spouse died, and
  3. The relatives of the deceased spouse who are alive at the death of the surviving spouse.

All of this applies to assets that are either (1) real property (real estate) or (2) personal property (all property other than real property that has written documentation of ownership) that exceeds $10,000 in total value.

Let’s pull all of these concepts together.  Let’s say that the deceased spouse died 15 years or fewer prior to the death of the surviving spouse.  In that case, all of the surviving spouse’s real property assets attributable to her deceased spouse will be distributed after the death of the surviving spouse as follows:

  1. Living children or grandchildren of deceased spouse living at death of surviving spouse: The living children or grandchildren of the deceased spouse will receive all of the surviving spouse’s real property assets attributable to her deceased spouse.  The total amount is divided in equal shares based on the number of living children of the deceased spouse and deceased children of the deceased spouse having living children or grandchildren.  Each living child of the deceased spouse receives their equal share.  The equal share of any deceased child of the deceased spouse is subdivided and distributed to that deceased child’s children and grandchildren.
  2. No living children or grandchildren of deceased spouse, but there are one or both living parents of the deceased spouse: The surviving parent of the deceased spouse will receive (or the surviving parents of the deceased spouse will receive in equal halves) all of the surviving spouse’s real property assets attributable to her deceased spouse.
  3. No living children, grandchildren, or parents of deceased spouse, but there are one or more living siblings or nieces or nephews of the deceased spouse: The surviving siblings, nieces, and nephews will receive all of the surviving spouse’s real property assets attributable to her deceased spouse.  The total amount is divided in equal shares in the same way as discussed regarding children and grandchildren of the surviving spouse at item 1 above in this list.
  4. No living children, grandchildren, parents, siblings, or nieces or nephews of deceased spouse: The heirs (as discussed in the next blog post of this series) of the surviving spouse will receive all of the surviving spouse’s real property assets attributable to her deceased spouse.
  5. No living children, grandchildren, parents, siblings, or nieces or nephews of deceased spouse and no heirs of surviving spouse: The heirs (as discussed in the next blog post of this series) of the deceased spouse will receive all of the surviving spouse’s real property assets attributable to her deceased spouse.

And exactly the same thing will occur regarding the surviving spouse’s personal property assets (as discussed above) attributable to her deceased spouse if the deceased spouse died five years or fewer prior to the death of the surviving spouse.

All of this discussion about marital assets in California applies to spouses of a married couple and also applies to the domestic partners of a registered domestic partnership.  Trying to keep things simple, in this blog post I used language regarding married couples and not registered domestic partnerships.

Get Help from an Experienced Trusts and Estates Attorney

Planning ahead for transfer of assets after your death can be very complicated.  There are many factors to consider, including who you want to receive the assets.  Also consider how easy you want to make things for your relatives after you die.  If you don’t do this correctly, then you may create confusion and even conflict among relatives after your death.

Hiring an attorney experienced with California transfers of assets after death is critical for obtaining the results that you need.  In addition, the advice and guidance of an attorney experienced with transfers of assets after death is invaluable in these cases.

At Meinzer Law Firm, P.C., we have over 20 years of experience helping clients with estate planning and transfers of assets after death in California.  Contact Meinzer Law Firm, P.C., in Torrance to assist you with your California estate planning or transfers of assets after death.

The next post will discuss your heirs other than your spouse.

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