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No Will, No Pre-Nup....How are assets divided?

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lynn75

Junior Member
What is the name of your state (only U.S. law)? Indiana

My father inherited our family's business from my grandma when she passed away a few years ago. My grandmother did not want the business to go to my dad's current wife in the event of his death. One of her stipulations in her will was that the business could only go to a blood relative if my father should pass away. I never thought that would legally protect anything, but I wanted to see what would happen to the business if something were to happen to my Dad. He had told us that he had a pre-nup when they got married and found out later on that he never had one drafted.

My dad's idea of a will is a little piece of paper that sits in his wallet, willing the business to his children (there are 3 of us) and splitting his house among his wife and us three kids. His life insurance and bank accounts go to his wife as well. Since we live in Indiana, I am afraid that if something happens to my Dad, his wife will get half of everything, including the family business. She would destroy the "will" that is in his wallet so by law, how would things be distributed?

Thank you.
Lynn
 


A

anteater

Senior Member
Urge your Dad to spring for a session with an attorney experienced in estate planning. Make it a Christmas present. Having a business sliced up by intestate succession is not a good thing.

Indiana has a more complicated intestate succession statute than most states when a second or subsequent spouse is involved:

IC 29-1-2
Chapter 2. Intestate Succession and Rights of Certain Interested Persons

IC 29-1-2-1
Estate; distribution
Sec. 1. (a) The estate of a person dying intestate shall descend and be distributed as provided in this section.
(b) Except as otherwise provided in subsection (c), the surviving spouse shall receive the following share:
(1) One-half (1/2) of the net estate if the intestate is survived by at least one (1) child or by the issue of at least one (1) deceased child.
(2) Three-fourths (3/4) of the net estate, if there is no surviving issue, but the intestate is survived by one (1) or both of the intestate's parents.
(3) All of the net estate, if there is no surviving issue or parent.
(c) If the surviving spouse is a second or other subsequent spouse who did not at any time have children by the decedent, and the decedent left surviving the decedent a child or children or the descendants of a child or children by a previous spouse, the surviving second or subsequent childless spouse shall take only an amount equal to twenty-five percent (25%) of the remainder of:
(1) the fair market value as of the date of death of the real property of the deceased spouse; minus
(2) the value of the liens and encumbrances on the real property of the deceased spouse.
The fee shall, at the decedent's death, vest at once in the decedent's surviving child or children, or the descendants of the decedent's child or children who may be dead. A second or subsequent childless spouse described in this subsection shall, however, receive the same share of the personal property of the decedent as is provided in subsection (b) with respect to surviving spouses generally.
(d) The share of the net estate not distributable to the surviving spouse, or the entire net estate if there is no surviving spouse, shall descend and be distributed as follows:
(1) To the issue of the intestate, if they are all of the same degree of kinship to the intestate, they shall take equally, or if of unequal degree, then those of more remote degrees shall take by representation.
......
Click to expand...
The entire chapter is here:
Indiana Code TITLE 29, Article 1 Table of Contents
 
C

curb1

Senior Member
I would approach your father with the direct question about his intentions. You are asking for a real mess if you wait until after death. His intentions most likely don't parallel what will happen without proper planning. I would think he wouldn't want everyone at odds after his death.
 
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