But what happens if someone dies without a will? This is known as dying “intestate,” and it means your estate will be distributed according to a set of pre-determined rules. This blog post explains what happens when someone dies intestate and why having a will is so important.
Dying Intestate: How Your Estate is Distributed
When someone dies without a will, the law sets out specific rules, called intestacy rules, to determine how their estate will be divided. These rules prioritise certain family members, and the distribution may not reflect what the deceased would have wanted.
Here’s a simplified overview of how the intestacy rules generally work in England and Wales (the rules can differ slightly in other parts of the UK).
When a person dies without leaving a will, their estate has to be shared out according to certain rules. These are called the rules of intestacy.
A person’s estate is made up of their money and property.
If a person dies without leaving a will, they’re called an ‘intestate person’.
Usually married partners, civil partners, and some relatives can inherit under the rules of intestacy. However, the rules can be complicated.
Married partners and civil partners
People who were married or in a civil partnership with the person when they died can inherit under the rules of intestacy. This includes if they were separated but still married.
Without a valid will, a person can’t inherit if:
- they were divorced from the person who died
- their civil partnership had legally ended when the person died
If there are children
If the estate is valued at more than £322,000 , the inheritance is divided between the partner and the children. If the estate is £322,000 or less then the children don’t inherit. The partner inherits:
- all the personal property and belongings of the person who has died
- the first £322,000 of the estate
- half of the remaining estate
The children will inherit the other half of the remaining estate. If the person who died had more than 1 child, this amount will be divided equally between them. This includes any child adopted by the person who died. It also includes any biological or adopted child the person had from other relationships.
Jointly-owned property
Couples may jointly own their home. There are two different ways of jointly owning a home.
These are beneficial joint tenancies and tenancies in common.
If the partners were beneficial joint tenants at the time of the death, when the first partner dies, the surviving partner will automatically inherit the other partners share of the property. However, if the partners are tenants in common, the surviving partner does not automatically inherit the other persons share.
Children
The amount a child inherits depends on:
- how many children the person who died had
- if the person who died had a married or civil partner who’s still alive – sometimes called a ‘surviving partner’
All children of the person who died inherit an equal amount. It doesn’t matter who their other parent is.
A child can inherit whether their parents were ever married or not.
A child adopted by the person who died can inherit. This includes step-children who have been adopted by their step-parent.
Step-children who weren’t adopted by the person who died can’t inherit under the rules of intestacy.
If a child is under 18, they can’t receive their inheritance until they’re 18 years old. The inheritance will be held in a trust. Until then, an adult called a ‘trustee’ will manage the inheritance on their behalf.
If the person who died had no surviving married or civil partner
The children of the person who has died inherit the whole estate. This applies however much the estate is worth. If there are 2 or more children, the estate will be divided equally between them.
If the person who died had a surviving married or civil partner
A child only inherits from the estate if the estate is valued at over £322,000.
The partner inherits:
- all the personal property and belongings of the person who has died
- the first £322,000 of the estate
- half of the remaining estate
A child inherits the other half of the remaining estate. If the person who died had more than 1 child, this amount will be shared equally between them.
Grandchildren and great-grandchildren
A grandchild or great-grandchild can’t inherit from the estate of an intestate person unless:
- their parent or grandparent has died before the intestate person
- their parent is alive when the intestate person dies but dies before reaching the age of 18
In these circumstances, the grandchildren and great-grandchildren will inherit equal shares of the share their parent or grandparent would have been entitled to.
Other relatives
There are rules around which other relatives can inherit. This depends on how people were related to the person who died and how much the estate is worth.
If there are no living relatives
If there are no surviving relatives who can inherit under the rules of intestacy, the estate passes to the Crown. This is called ‘bona vacantia’.
The Treasury Solicitor is then responsible for dealing with the estate. The Crown can make grants from the estate but doesn’t have to agree to them.
Why Having a Will is Crucial
The intestacy rules can be quite rigid and may not reflect your wishes. Here are some key reasons why having a will is so important:
- Control over Distribution: A will allows you to decide exactly who inherits your assets. You can leave specific items to specific people, make gifts to charities, or ensure that your loved ones are provided for in the way you choose.
- Protecting Your Loved Ones: A will can help protect your loved ones by ensuring they receive the inheritance you intend for them. This is particularly important for unmarried partners, who are not automatically entitled to anything under the intestacy rules.
- Avoiding Disputes: A will can help prevent disputes among family members about how your estate should be divided. Clear instructions can minimise the potential for conflict during an already difficult time.
- Appointing Executors: In your will, you appoint executors, who are responsible for administering your estate. This gives you control over who handles your affairs after your death.
- Guardianship of Children: If you have children, you can appoint guardians for them in your will, ensuring they are cared for by someone you trust.
Don’t Leave it to Chance
Dying without a will can create significant complications and distress for your family.
It’s essential to make a will to ensure your wishes are respected and your loved ones are protected. Creating a will is a straightforward process, and it’s one of the most important things you can do to plan for the future.
Consulting with a solicitor specialising in wills and probate is highly recommended. They can guide you through the process and help you create a will that reflects your wishes.
Don’t leave it to chance; take control of your legacy by making a will today.
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