What does it mean if a person dies intestate?

Prepare for the Canon Financial Institute CFIRS Exam with flashcards and multiple choice questions. Each question comes with hints and explanations for better understanding. Get ready to excel in your exam!

When a person dies intestate, it means that they passed away without having a valid will in place. This situation implies that the individual did not leave specific instructions regarding the distribution of their assets after their death. In such cases, the estate will be distributed according to the laws of the state in which the person resided. Each jurisdiction has statutes that determine how an intestate estate is to be divided among surviving relatives, which often prioritizes immediate family members such as spouses and children.

The other choices do not accurately capture the definition of intestate. For example, a person can have surviving relatives even without a will, and their estate can have significant financial value regardless of the absence of a will. Additionally, dying in a foreign country does not directly relate to the existence or absence of a will, as one can die intestate regardless of their location. Therefore, the correct interpretation of dying intestate is one where there is no valid will present to dictate the distribution of an individual's estate.

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