Finance: What is Intestate/probate?

What does it mean to die intestate, and have your estate go into probate? Whatever it means, it'd make a decent rhyme in a financial rap.

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Transcript

00:30

where to leave your financial leavings the state grabs it more or less thank

00:35

you very much and if an heir does materialize well then your money has to

00:39

go through probate which is like amature bait only it costs money so

00:45

probate itself is the first step in dying financially or at least settling

00:50

your state when you're you know doing backstroke Six Feet Under [Ghost man performing back stroke under the ground]

00:54

specifically in probate proceedings the court acknowledges that your will

00:59

whichever version your lawyers would present to the court is in fact your

01:04

will and is representative of what you wanted your last dying wishes in giving

01:10

away your money to be what can happen with poor estate planning well just ask

01:15

actor James Gandolfini and well you can ask but he probably won't answer [Grave stone appears of James Gandolfini]

01:20

Gandolfini that guy died in 2013 and when he did his family had to deal with

01:26

two shocks the shock of his parting and the shock of how royally he had screwed

01:32

up his estate and estate planning not giving five minutes thought to his heirs

01:37

who you know he could have taken care of instead of everything going to

01:41

Gandolfini's intended beneficiaries roughly thirty million dollars in taxes

01:46

would end up going to the IRS and those guys didn't even attend the funeral [Man appears from an office desk]

01:51

because Gandolfini hadn't been specific as to where the money went well there

01:55

was four million in take out taxes for this probate proceeding and eight

01:59

million for that and then he hadn't transferred a little bit of money each

02:03

year to his heirs till all of it got taxed at a state tax rates which are

02:07

very high and then it ended up not even actually going to the people he wanted

02:11

like his kids and others who we loved and

02:14

instead it went to a whole lot of government bureaucrats so yeah intestate

02:18

is bad it puts your heirs in a difficult litigation situation forcing them to [Judge banging gavel]

02:23

endure a ton of taxes in grief in addition to their uh you know grief