Final answer:
The term 'insufficient assets' in intestate property refers to an estate not having enough assets to cover debts and liabilities. State intestacy law governs asset distribution in such cases when there is no will.
Step-by-step explanation:
The term 'insufficient assets' in the context of Intestate Property refers to the situation where a deceased person's estate does not have enough assets to cover all the debts and liabilities owed by the estate. When a person dies intestate, meaning without a valid will or trust, the distribution of their assets is controlled by state intestacy laws. These laws dictate the hierarchical order in which beneficiaries, such as a spouse, children, parents, and siblings, will receive assets from the estate.
A will itself is a document that outlines how an individual wishes their assets to be distributed upon their death. Without a will, and if the assets are insufficient, the estate may not be able to fulfill all financial obligations or provide for the intended beneficiaries as priorities are set by state law. Being a public process, the execution of a will allows scrutiny and potential contesting, exposing details about the deceased's assets and to whom they are to be distributed.