What occurs if an individual dies without a will?

Prepare for the UCF FIN2100 Midterm 2 Exam. Study flashcards and multiple choice questions with hints and explanations for better understanding. Equip yourself for success!

If an individual dies without a will, the estate will be distributed according to the state's intestacy laws. These laws are designed to provide a default distribution plan for assets when someone dies intestate (without a will). Each state has its own intestacy statutes that outline how the estate will be divided among surviving relatives, typically prioritizing spouses, children, parents, and siblings in that order.

This process ensures that family members receive a fair share of the deceased's assets according to legal guidelines, even in the absence of a will that specifies individual wishes. Intestacy laws establish a clear framework for estate distribution, helping to minimize disputes among surviving family members.

The other choices do not accurately reflect what happens when someone dies without a will, as the estate does not go to the federal government, is not automatically divided equally among all relatives, and is not given to a charitable organization unless specifically stated in a valid will.

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