What is the process called for passing an estate to heirs when the owner dies without a will?

The process for passing an estate to heirs when the owner dies without a will is called the laws of descent and distribution. This legal framework dictates how an estate is divided among heirs according to statutory guidelines, which differ from state to state. It ensures that the deceased's assets are allocated fairly to relatives, typically prioritizing spouses, children, and other close family members.

In contrast, estate planning refers to the arrangements made during a person's lifetime regarding how their estate will be handled upon their death, particularly in creating a will or trust. The probate process involves the legal proceedings that take place to validate a will or settle the estate of someone who has died, which may be necessary regardless of whether there is a will. Asset allocation typically relates to the strategic distribution of investment resources rather than inheritance or estate transfer processes. Understanding the laws of descent and distribution is essential for recognizing how assets are transferred in cases of intestacy, or dying without a will.