Intestate
The legal condition that occurs when a person dies without leaving a valid will or estate plan. When someone dies intestate, their property is distributed according to state intestacy laws rather than their personal wishes.
Example
“When John died intestate, his property had to be distributed according to state inheritance laws rather than his personal wishes.”
Memory Tip
Intestate sounds like 'in-test-ate' - they died before they could take the 'test' of writing their will, so the state decides instead.
Why It Matters
Intestate deaths can create complications for real estate transactions, as property ownership may be unclear until probate court determines legal heirs. This can delay closings and create title issues that must be resolved.
Common Misconception
People often believe that property automatically goes to the surviving spouse, but intestacy laws vary by state and may divide assets among multiple heirs.
In Practice
A seller discovers they can't close on their inherited family home because their deceased parent died intestate, requiring months of probate proceedings to establish clear title among three siblings.
Etymology
From Latin 'intestatus' meaning 'without a will' (in- = without + testatus = having made a will), describing someone who died without leaving legal instructions for their property.
Common Misspellings
Compare today's mortgage rates
More in real estate
Other real estate terms you should know
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.