A will is the cornerstone document that displays how one’s estate should be distributed after their passing. It serves as a voice from beyond, guiding the allocation of assets to beneficiaries as per the deceased’s wishes. However, what happens when someone passes away without having penned this crucial document? This situation, known as dying ‘intestate’, triggers a legal process that can be intricate and emotionally taxing for the surviving relatives. In the United Kingdom, specific rules dictate the distribution of assets in such circumstances. This blog aims to make this process clear, offering clarity and guidance through inheritance when there is no will.

The Rules of Intestacy

The intestacy rules in England and Wales are governed by the Administration of Estates Act and the Inheritance and Trustees’ Powers Act. These laws set out a clear hierarchy of beneficiaries, which is strictly adhered to when distributing the assets of someone who has died intestate. The rules aim to ensure a fair and equitable distribution of assets, but they may not always align with what the deceased might have wanted.

Who Inherits First?

The order of inheritance under the rules of intestacy is as follows:

Married partners and civil partners

Contrary to common belief, spouses or civil partners do not automatically inherit the entire estate in the absence of a will. Their share depends on the presence of other surviving relatives.  Married partners or civil partners inherit under the rules of intestacy only if they are actually married or in a civil partnership at the time of death. So if you are divorced or if your civil partnership has been legally ended, you can’t inherit under the rules of intestacy.

Partners who separated informally can still inherit under the rules of intestacy. Cohabiting partners (sometimes wrongly called ‘common-law’ partners) who were neither married nor in a civil partnership can’t inherit under the rules of intestacy.

If there are surviving children, grandchildren or great grandchildren of the person who died and the estate is valued at more than £322,000, the partner will inherit:

  • all the personal property and belongings of the person who has died, and
  • the first £322,000 of the estate, and
  • half of the remaining estate.

If there are no surviving children, grandchildren or great-grandchildren, the partner will inherit:

  • all the personal property and belongings of the person who has died and
  • the whole of the estate with interest from the date of death.

Children

If there is no surviving spouse or civil partner, the children of the deceased inherit the entire estate, divided equally among them. This includes legally adopted children but not step children unless they have been formally adopted.

Other Relatives

If the deceased has no surviving spouse, civil partner, or children, the estate is divided among other relatives in a specific order: parents, siblings, nieces and nephews, and so on.

When it comes to siblings, a distinction is made between full-blood and half-blood siblings. Full-blood siblings inherit first. Half-blood siblings only inherit if there are no surviving full-blood siblings.

The Importance of Making a Will

While the intestacy rules provide a safety net for the distribution of assets, they may not reflect the deceased’s personal relationships or their wishes for how their estate should be distributed. This can lead to unintended consequences, such as estranged relatives inheriting assets or close friends and unmarried partners receiving nothing.

Making a will is the only way to ensure that your assets are distributed according to your wishes. It offers peace of mind, knowing that your loved ones are taken care of and that your estate won’t be divided solely according to the rigid structure of the law. Furthermore, a will can help prevent potential disputes among relatives and mitigate the legal complexities associated with the intestacy process.

Conclusion

The aftermath of a loved one’s passing is a challenging time, made even more so by the complexities of legal processes such as intestacy. Understanding the rules that govern the distribution of assets in the absence of a will is crucial for anyone navigating this difficult terrain. However, the best course of action is to prepare a will, with the assistance of a legal professional, to ensure your wishes are honoured and your loved ones are protected. At The Will Centre, we are dedicated to providing expert guidance and support in estate planning and will writing. Contact us today to ensure your legacy is preserved exactly as you intend.

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