In the context of estate planning, what does "intestacy" refer to?

Intestacy refers to the situation in which a person passes away without having a valid will in place. When an individual dies intestate, their assets and estate are distributed according to the state laws governing intestacy. These laws outline a predetermined distribution scheme, which can vary significantly depending on familial relationships and the specific statutes of each state.

Having a will, transferring property through a trust, or distributing assets according to living trusts involve the presence of legal documents that guide the management and distribution of an individual’s estate, which is contrary to the concept of intestacy. The absence of such a directive in the form of a will is what defines intestacy.