Intestate refers to dying without having made a valid will or other binding declaration. When someone dies intestate, it means that they have not left instructions regarding the distribution of their assets, including real estate holdings. In this situation, the distribution of the deceased’s estate is governed by the intestacy laws of the jurisdiction in which the property is located.
These laws provide a default plan for distributing the deceased’s assets, typically to the closest surviving relatives. This can sometimes lead to unintended or unexpected outcomes, especially if the deceased had complex financial arrangements or relationships, such as various real estate investments.
In the context of real estate investment, intestacy might cause complications in the transfer of properties, especially if they are part of a larger investment portfolio. It might lead to legal challenges or delays that can affect the overall value or management of the investment. Therefore, estate planning, including the creation of a valid will, is often considered an essential aspect of managing real estate investments.