Making a will is a crucial step in planning for the future, but many people overlook it, not realising what happens if you die without a will. They often assume their assets will automatically go to their loved ones. However, if you die without a will in England and Wales, you are considered to have died “intestate,” and your assets will be distributed according to the rules of intestacy. These laws can lead to unintended consequences for those left behind, making it essential to understand how they work.
What Does Intestate Mean?
In simple terms, intestate means dying without a valid will. When this happens, the deceased’s estate — including money, property, and possessions — is distributed based on the intestacy rules set out in the law of England and Wales. These rules do not take into account the personal wishes of the deceased or their specific family situation.
Who Inherits Under Intestacy Rules?
The order in which people inherit under intestate laws depends on whether the deceased was married or in a civil partnership, and if they had children. Here’s a breakdown of who inherits:
1. Married or Civil Partner with Children
If the deceased was married or in a civil partnership and had children, the spouse or civil partner will inherit:
- All personal possessions
- The first £270,000 of the estate
- Half of the remaining estate
The other half of the remaining estate is shared equally among the children. If a child of the deceased has already died, their children (the grandchildren) inherit their parent’s share.
2. Married or Civil Partner with No Children
If the deceased had no children, the spouse or civil partner will inherit the entire estate, including all property and assets.
3. Unmarried with Children
If the deceased was not married or in a civil partnership but had children, the estate is divided equally between the children. Again, if one of the children has died, their share is passed on to their children.
4. Unmarried with No Children
If the deceased was unmarried and had no children, the estate is distributed to their next of kin in the following order:
- Parents
- Siblings
- Nieces and nephews
- Half-siblings
- Grandparents
- Aunts and uncles
- Cousins
If no relatives can be found, the estate passes to the Crown.
What Rights Does a Partner Have?
If you are in a long-term relationship but not married or in a civil partnership, intestate laws do not recognise your partner’s right to inherit. This means they will not automatically receive anything from your estate unless you have a valid will stating otherwise. This can lead to financial hardship for surviving partners who may be left without a share of the estate.
Jointly Owned Property and Assets
It’s important to note that jointly owned property and assets may not be subject to intestacy rules. If the deceased owned property as “joint tenants,” the surviving joint owner will automatically inherit the deceased’s share, regardless of intestacy laws. However, if the property was owned as “tenants in common,” the deceased’s share will pass according to intestacy rules or their will, if one exists.
What Happens to Minors?
If the deceased leaves behind children under 18, their share of the estate will be held in trust until they reach adulthood. A legal guardian may also need to be appointed if there is no surviving parent or if the surviving parent does not have parental responsibility.
Can Intestacy Be Challenged?
In certain circumstances, it may be possible to challenge the distribution of assets under intestate law. For example, a family member or dependent may be able to make a claim under the Inheritance (Provision for Family and Dependants) Act 1975 if they feel they have not been adequately provided for.
Why It’s Important to Make a Will
Dying intestate can result in your assets being distributed in a way you did not intend. This can cause unnecessary financial strain and emotional distress for your loved ones. By making a will, you can ensure your estate is divided according to your wishes, and you can appoint guardians for your children, make specific gifts, and even support charities.
Final Thoughts
The rules of intestacy in England and Wales are rigid and may not reflect your personal wishes or family circumstances. Whether you are married, in a civil partnership, or have children, creating a will is the best way to ensure that your estate is distributed according to your preferences and that your loved ones are provided for in the event of your death.
If you haven’t made a will yet, it’s a good idea to speak to a solicitor to ensure your estate is protected and your wishes are respected. Don’t die without a will. At Imperial Law, we specialise in helping clients make suitable arrangements through their will. Contact us today, we’ll be happy to help you.
