Intestacy

Many people assume that if they pass away without a will, their property will simply go to their family or that everything will “work itself out.” Unfortunately, that is not how the law works. When someone dies without a will, called dying intestate, the State of Ohio effectively creates a will for them using a rigid set of statutory rules. These rules may not reflect the person’s wishes, family dynamics, or the needs of a farm operation.

For farm families, intestacy can be especially problematic. Land, equipment, and other farm assets often require careful planning to ensure continuity. Without a will or estate plan, those assets may be divided in ways that disrupt the operation or create conflict among heirs.

The State’s Plan: One-Size-Fits-All

Ohio’s intestacy laws, found in Chapter 2105 of the Ohio Revised Code, determine who inherits probate property when there is no will. The law follows a strict hierarchy —spouse, children, parents, siblings, and more distant relatives. The probate court must apply these rules exactly, with no flexibility to consider what the deceased may have intended.

For example, a farmer may expect that the child who has worked on the farm for years will take over the operation. Under intestacy law, however, that child is treated the same as any other heir, regardless of their involvement in the farm. This can result in shared ownership among multiple heirs, some of whom may want to sell rather than continue farming.

Not All Assets Go Through Probate

A critical and often misunderstood aspect of estate administration is that not all assets are subject to probate or intestacy laws. In fact, some assets pass automatically at death based solely on how they are titled or whether a beneficiary has been named. These are called non-probate assets, and they transfer directly to the named beneficiary without court involvement.  This is typically done by identifying a payable on death or transfer on death beneficiary for the asset.

Common examples include:

• Life insurance policies with a designated beneficiary
• Retirement accounts such as IRAs and 401(k)s
• Bank or investment accounts with “payable-on-death” (POD) or “transfer-on-death” (TOD) designations
• Jointly owned property with rights of survivorship
• Assets held in a trust

For these assets, the beneficiary designation controls who receives the property rather than a will or intestacy law. Even if a person dies without a will, these non-probate assets will pass directly to the named individual.

For example, if a farmer has a life insurance policy and a bank account naming a child as beneficiary, that child will receive the proceeds automatically upon death. The probate court is not involved, and the intestacy statute does not apply to that asset.

Why Beneficiary Designations Matter

Because beneficiary designations override intestacy, they can be a powerful planning tool. In fact, it is possible for someone to structure much of their estate using beneficiary designations alone.  However, this approach has limitations.  Many farm assets such as machinery, livestock, and grain are often owned solely in an individual’s name and are not titled so do not have beneficiary designations. These assets must go through probate and will be distributed according to intestacy laws if no will exists.

This creates a split system:

• Non-probate assets (with beneficiaries) transfer automatically
• Probate assets (without beneficiaries) are controlled by intestacy

Without coordination, this can lead to unintended results. One heir might receive all the liquid assets (like insurance or accounts), while others inherit farmland or equipment through probate. That imbalance can create tension and complicate farm operations.

Probate Is Not Avoided, It’s Guaranteed

Some people believe that avoiding a will helps avoid probate. In reality, the opposite is true. Dying without a will often makes probate more complicated.  When a valid will exists, it names an executor to manage the estate. Without a will, the probate court must appoint an administrator. This person performs the same duties but without guidance from the deceased.  Ohio law gives priority to the surviving spouse and next of kin to serve as administrator. However, if those individuals are unwilling or unable to serve, the court may appoint someone else, including an attorney or even a creditor in some cases.  This process can create additional delays, costs, and potential disputes.

Distribution Can Create Real Problems for Farms

Intestacy distribution works reasonably well for simple family situations, but it can create serious complications for farm families. Consider a situation where a surviving spouse and children from a prior marriage inherit the estate. Under Ohio law, the spouse will receive a portion of the estate, with the remainder divided among the children. This can result in multiple individuals owning undivided interests in farmland.

Now imagine one heir wants to continue farming, while another wants to sell the land. Because each owns a share, decisions require agreement. If they cannot agree, a court may order the property sold to divide the proceeds.  This outcome can cause failure for a farm operation that took generations to build.

Additional Concerns: Minor Children and Public Proceedings

If minor children are involved, dying without a will creates further complications. A will allows parents to nominate a guardian. Without one, the probate court decides who will raise the children, based on what it believes is in their best interest.  Additionally, any inheritance for a minor is typically held in a court-supervised account until the child reaches adulthood. This limits flexibility and may not align with how a parent would want funds managed.  It is also important to remember that probate is a public process. Estate filings are accessible to others, which can expose details about land ownership and finances. For farm families, this transparency can invite unwanted attention from outside parties.

Take Control of the Outcome

Dying without a will does not mean avoiding decisions, it means accepting the state’s decisions instead of making your own.  For farm families, the stakes are particularly high. Land, equipment, and business interests require thoughtful planning to ensure a smooth transition and to preserve the operation.

A basic estate plan can:

• Ensure assets go to the intended people
• Coordinate probate and non-probate transfers
• Support continuity of the farm operation
• Reduce the risk of family conflict
• Provide clarity during a difficult time

Beneficiary designations are an important tool and can help certain assets avoid probate entirely. But they are not a complete substitute for a well-designed estate plan, especially when significant farm assets are involved.  Understanding how intestacy works is the first step. The next step is deciding whether that default plan is one you are willing to accept or whether it is time to create a plan of your own.