Connecticut residents have a default estate plan. It is codified in a set of statutes known as the laws of intestacy. These laws determine who is entitled to inherit the deceased’s property. Generally, the distribution of property depends on whether a person was married, had children, or had living parents. Intestacy—the default estate distribution schematic—can be modified through estate planning.
Scenario 1: Single—No Children—Living Parents
The estate of an unmarried decedent without children would pass entirely to his parents.
Scenario 2: Single—Children—Living Parents
In Connecticut, a living child of the decedent functions to disinherit the decedent’s parents. Public policy in the state favors passing wealth to subsequent generations. Thus, a living child would inherit everything even if the decedent had a living parent.
Scenario 3: Married—No Children—Living Parents
Unlike many other states, Connecticut entitles the parents of a married decedent to inherit part of their child’s estate. The spouse would receive the first $100,000 and 75% of the remaining estate. The living parents of the deceased would inherit 25% of the remaining estate. If the estate were valued at $100,000 or less, the spouse would inherit the entire estate.
Scenario 4: Married—No children—No Alive Parents
The spouse of a married person inherits everything if the decedent had no children and no living parents. This is one of the few scenarios in Connecticut in which the spouse would be entitled to the entire estate.
Scenario 5: Married with Children—Living Parents
For the reasons outlined in Scenario 2, a parent loses inheritance rights if the decedent had a living child at the time of death. Hence, the outcome of this scenario would be the same as in Scenario 6.
Scenario 6: Married with Children or Descendants
The intestacy laws of Connecticut look beyond mere children of the deceased for inheritance purposes. Instead of children (“issue” in legal parlance), state law considers whether a decedent had descendants. The term “descendants” includes children, grandchildren, great-grandchildren, etc. When a married person dies with descendants, his spouse inherits the first $100,000 and 50% of the remaining estate. The descendants inherit the remaining 50%. If the estate were valued at $100,000 or less, the spouse would inherit the entire estate.
Scenario 7: Married with Descendants and Step-children
Unless they have been adopted by the descendant, step-children have no right to inherit from a step-parent under the laws of intestacy. The spouse of the deceased would inherit the first $100,000 and 50% of the remaining estate. The biological descendants of the deceased person would inherit the remaining 50%. If the estate were valued at $100,000 or less, the spouse would inherit the entire estate.
While step-children have no direct right to inherit from a step-parent, they may receive assets from a step-parent indirectly. Suppose a person dies with a spouse, biological children, and step-children. Upon his death, his estate would be apportioned according to statute between his children and spouse. The step-children would inherit nothing. However, once his spouse dies, the assets she inherited from her late husband would pass to her biological children, even if some of those children were step-children of her husband.
The laws of intestacy are very complicated in Connecticut. For this reason, it is prudent to opt out of the default inheritance scheme by drafting an estate plan. Doing so allows a person to specify the assets he wishes to pass to a specific person.