Don’t Let the State Take Your Money: Why You Need an Estate Plan in 2025
Many Americans go to great lengths to keep the government out of their private financial affairs. But without an estate plan, state law can take over after your death—and potentially claim your unclaimed assets. The process, called escheatment, can turn your hard-earned money and property over to the state instead of your loved ones.
What Happens If You Die Without an Estate Plan?
If you pass away without a will or trust—called dying intestate—your assets will be distributed according to your state’s intestacy laws. These default rules rarely reflect your wishes and can even leave your most cherished people out entirely. Worse, if no rightful heirs can be found, your estate may escheat to the state.
Understanding Escheatment: How the State Claims Your Property
The concept of escheatment has feudal roots, but it’s still very much alive today. When accounts and property go unclaimed—due to a lack of documentation, beneficiary designations, or estate planning—they are eventually turned over to the state after a dormancy period (typically 1–5 years, depending on the state).
Unclaimed property includes:
Bank accounts and investment accounts (IRAs, 401(k)s)
Uncashed checks and life insurance proceeds
Safe deposit box contents
Gift cards or certificates
Stocks and dividends
Escheatment Is Big Business
States are ramping up enforcement of escheat laws. In fact:
California holds more than $14 billion in unclaimed property as of 2025.
Escheated funds are the fifth largest source of revenue for California and the third for Delaware, according to NPR.
Shocking Statistics: Most Americans Are Unprepared
According to a 2025 survey by Caring.com, only 24% of Americans have a will. That means three out of four people are at risk of dying intestate, putting their estates in the hands of the government.
Even those with estate plans may have outdated or incomplete documents, leaving certain assets unprotected and vulnerable to escheatment.
What Is Intestacy—and Why You Should Avoid It
Intestacy laws prioritize next of kin, but if no heirs are identified, your property may revert to the state. Even if you do have a will, anything not clearly covered in it may fall into partial intestacy.
Without a comprehensive estate plan, you leave the door open for the government to decide what happens to your assets.
Who Loses Out Without an Estate Plan?
Here are just a few examples of people who get left behind under default intestacy laws:
Stepchildren (unless legally adopted)
Unmarried partners
Close friends
Charities and causes
Guardians for minor children
Individuals named in specific bequests
Intestacy laws simply don’t account for your personal relationships or legacy goals. A thoughtful estate plan does.
Why a Trust-Based Estate Plan Is Even Better
A will is a good start, but a revocable living trust can offer:
Probate avoidance
More privacy
Faster distribution
Better organization of assets
Ongoing control if you become incapacitated
Plus, a complete plan can include powers of attorney, advance healthcare directives, and an asset inventory to prevent property from going unclaimed in the first place.
Take Control: Don’t Let the Government Write Your Legacy
Legal terms like “escheat” and “intestate” may sound intimidating, but estate planning isn’t just for the wealthy. It’s for anyone who owns a home, has a bank account, or cares about their loved ones.
If you want to:
Keep your money and property in the hands of your chosen heirs
Avoid costly court involvement
Support your family, friends, or favorite charities
Minimize stress and confusion for your loved ones
…it’s time to create or update your estate plan.
Let’s Create Your Custom Estate Plan Today
Don’t leave your legacy to chance—or to the state. Whether you need to create a plan from scratch or update an old one, our team is here to help. Call us today to schedule your free consultation and get started on a personalized estate plan that puts you in control.