Many people believe that if they don't leave a Will, then there partner or spouse will inherit anyway. This is sadly not the case and is a common misconception. If you die without a Will, your estate will be subject to the rules of intestacy. These rules are nearly 100 years old and so as you can imagine are very out-of-date and do not cater from modern families, such as blended families, stepchildren or co-habitees.
If you have children, then your spouse will be entitled to what is known as a statutory legacy. The statutory legacy will be increased from £270,000 to £322,000 on 27th July 2023. This means that your spouse will receive this amount first together with your personal possessions, with the balance being split between your spouse and your children. They only inherit your entire estate if you do not have children.
It should be noted that if your children are under the age of 18 when you die, then their inheritance will be held in Trust until their 18th birthday, at which point they will inherit their share absolutely. Many people believe that 18 is too young to inherit and there is no way to change this under the rules of intestacy.
If you do not have a spouse or children, then the order of priority as to who will inherit is as follows: your parents, your brothers and sisters (including half brothers and sisters), your grandparents and your uncle and aunts. If any one them has died before you, then their share will pass to any children they may have. If you do not have any living blood relatives, then ultimately your estate will pass to the Crown.
Here's what typically happens in the UK if you die without a Will:
Distribution of assets: The distribution of your estate will be governed by the rules of intestacy, which outline how your assets will be distributed among your surviving relatives. The rules prioritise spouses, civil partners, and close blood relatives. If you have no surviving relatives, your estate may go to the Crown (the state).
Spouse or civil partner's entitlement: The surviving spouse or civil partner is typically entitled to inherit a significant portion of the estate. The exact share may vary depending on the value of the estate and whether there are any children or other surviving relatives.
Children's entitlement: If you have surviving children, they may be entitled to a share of the estate, in addition to the spouse or civil partner's share. Your step children would not inherit under these rules.
Other relatives: If you have no surviving spouse or civil partner, your estate will be distributed among your closest blood relatives, such as parents, siblings, or nieces/nephews, depending on the specific family circumstances.
Unmarried partners and friends: If you are not married or in a civil partnership, and you have no blood relatives, close friends or unmarried partners generally have no automatic entitlement to inherit your estate under the rules of intestacy.
Nowadays, it is not unusual for people to divorce, have second families, or choose to cohabit rather than enter a civil partnership or marriage. This can lead to distant family members inheriting in place of partners, friends or charities if a valid Will is not in place. Due to this and their tax inefficiency, the rules are regularly criticised. It's important to note that intestacy can result in a distribution of assets that may not align with your personal wishes. To avoid this and ensure your assets go to the individuals or causes you care about, it is advisable to create a legally valid Will. This allows you to have control over the distribution of your estate and can save your loved ones from potential legal complexities and delays after your passing.
Comments