What Does “Next of Kin” Mean in Estate Planning?

Estate planning tools like wills, trusts and powers of attorney can help ensure that your wishes are honored if you become incapacitated or pass away. Without them, your next of kin may inherit your assets or be tasked with making crucial medical decisions on your behalf.

Your next of kin is your closest living relative—and they may have important responsibilities to carry out if you don’t have an estate plan in place.

What is next of kin?

Next of kin is commonly used to describe the closest living relative of someone who died . If you die without a will, a court will name someone—typically the next of kin—to inherit your estate. This is part of a court process called probate. Your next of kin may also need to coordinate paying expenses from your estate and sorting out your finances when you’re gone.

Next of kin vs. power of attorney

If you become seriously ill or incapacitated, medical providers might turn to your next of kin to make critical health care decisions—and their choices may or may not align with your wishes. This is why having a power of attorney is so important.

A power of attorney is a legal document that allows you to name someone (an agent) to make medical, financial and legal decisions on your behalf if you become unable to advocate for yourself. You can name anyone in your power of attorney.

If you don’t have a power of attorney, your next of kin may need to make medical decisions on your behalf.

Next of kin vs. executor of an estate

When creating a will, you name someone to be the executor of your estate. This person is legally responsible for carrying out the directions in your will, from making sure that all taxes and debts are paid on your estate to disbursing your assets.

If you don’t have a will, a court will appoint someone to fulfill these responsibilities. That person is usually the next of kin.

Who is considered the next of kin?

State law determines who is the next of kin, but the surviving spouse or registered domestic partner is usually first in line. They’re generally followed by adult children, parents, siblings and other blood relatives—though the exact order varies by state.

The state may also select a collateral heir, who is someone selected to receive an inheritance though they aren’t a direct relative of the person who died. Examples of a collateral heir could be a niece, nephew or cousin.

What are the next of kin rights and responsibilities?

Depending on the situation, the next of kin may be responsible for:

• Making medical decisions if there is no power of attorney or living will in place.

• Starting the probate process, during which the court will decide who gets assets and how the estate is dispersed.

• Paying off any debt.

• Paying federal and estate taxes and filing final returns.

The next of kin may also take care of other tasks like making funeral arrangements.

Does next of kin inherit debt?

No. Most debts you have when you die will be paid from your estate.

Depending on their relationship to you and your debt, certain individuals could inherit your debt even if they are not related to you. These individuals are:

• Spouses: Some states require community property—that is, property shared between spouses— to be put toward debt when a spouse dies.

• Joint account holders: If you opened up a bank account with another person, that person would be responsible for any debts associated with that account.

• Co-signers: If you take out a loan for a business, house or car with another person, they would still be responsible for any payments after you pass away.

• Estate executors (in certain situations): Although executors are generally not personally liable for an estate’s debt, they can be held responsible if they are careless in their management of the estate’s assets or fail to pay the estate’s debts before allocating assets to the beneficiaries.

Can someone refuse to be next of kin?

Yes, someone can choose not to act as the next of kin. In this case, the next closest relative will be asked to fill the role.

How do you determine the next of kin?

Next of kin is determined by state law. To ensure your inheritance goes to the people you choose, you’ll want to set up an estate plan, including a will or a trust. Without estate planning documents in place, the court and your next of kin will make decisions about your assets. And if you don’t have a living next of kin, there’s a chance your estate could simply go to the state.

While estate planning can get complicated, the right professionals can guide you through the process. With Northwestern Mutual, your advisor will ask better questions to understand what is important to you and help you build a financial plan that includes your legacy planning.