Posted in Finance, Accounting and Economics Terms, Total Reads: 326
Intestacy is the condition of the net worth or the estate of the person which includes net property, interests and various other kinds of rights, the sum total of the value of this estate is more than the legal obligations or the legally enforceable debt or duties or other obligations of the died person.
Also, in the state of intestacy, died person has not allocated the additional sum to any other heir through the will. This term is basically used in reference of real estate or personal estate. According to bankruptcy law of United States, The personal estate of any person includes the sum total of all its assets that are being made available to the creditors. However, some of the resources are subject to exemption under this law so that the person can restart or maintain his general financial life. Intestacy has its application only in those jurisdictions which follow Civil law or Roman law. Historically, under the doctrine of forced heir ship the rest of the property is being transferred to the next-of-the-kin i.e. the closest blood relative of the deceased person.
Englishmen used to dispose their land and other immovable assets through real property and other personal belongings by way of chattels. But this law was declined after Britain became a mercantile society. However, according to the current law, the remaining property is transferred to the spouse of the dead person or the children or the grandchildren. However, in the absence of the forward family, the same rule applies to the family tree of the parents of the deceased and their siblings and so on. In US and Canada intestacy laws varies from state to state and province to province. But in England and Whales, intestacy laws are uniform since 1925 and are supplemented by Inheritance Act of 1975.