Understanding the Intestacy Rules in England and Wales

“I can’t be bothered with a Will…it’ll all go to my children/family anyhow, and Wills are expensive so what’s the point”

We’ve heard that a few times, along with “I’ll do it myself”. Regrettably either decision is likely to cause unnecessary worry, expense, and even conflict.

Here are 6 key reasons you should think carefully before either doing nothing or going for the cheap option:

1. Control over your assets: A will allows you to decide how your property, finances, and assets will be distributed after your death. Without one, the state will determine who gets what, which might not align with your wishes.
2. Appoint guardians for dependents: If you have children or dependents, a will lets you name a guardian to care for them in the event of your death. This ensures your children are taken care of by someone you trust.
3. Avoid family disputes: Clear instructions in a will can help reduce misunderstandings or disputes among family members regarding your estate. It can offer clarity and prevent potential conflicts after you pass away.
4. Minimise probate complications: A well-crafted will can simplify the probate process, the legal process that occurs after someone dies. Without a will, the process can become more complicated, costly, and time-consuming.
5. Estate tax planning: A will can help with planning how your estate will be taxed, potentially minimising the tax burden on your heirs.
6. Peace of mind: Knowing that you’ve made decisions in advance for the distribution of your estate provides peace of mind for both you and your loved ones. It can make a challenging time easier to navigate.

Ultimately, a will gives you the opportunity to make sure your wishes are followed and your loved ones are taken care of.

What happens when the Intestacy Rules apply?

When the Intestacy Rules apply the estate is distributed according to the Administration of Estates Act 1925, not according to what the deceased may have wanted. The order in which beneficiaries are dealt with, is in fact dictated by the Intestacy Rules  which set out a strict order of who inherits

If there is a surviving spouse or civil partner

No Children:

• The spouse inherits the entire estate.

With Children: The spouse receives:

• All personal possessions (chattels)
• A statutory legacy of £322,000

The remainder of the estate is split:

• 50% to the spouse
• 50% equally among the children

Under the Rules the spouse of Civil partner must survive the deceased by 28 days in order to inherit, this is known as the survivorship period. If they fail to survive the survivorship period then they are treated as having died first and therefor ethe estate will pass to the next eligible beneficiary.

What if there is no spouse or civil partner?

The Rules do not recognise unmarried or unregistered partners, regardless of how long they have been together. This means that the surviving partner has no automatic right to inherit.

Unmarried or unregistered surviving partners may:

• Make a legal claim under the Inheritance (Provision for Family and Dependants) Act 1975, or
• Be provided for by a Deed of Variation which would need to be agreed upon by all the legal beneficiaries.

Priority of inheritance if there is no spouse or civil partner

1. Children – this includes biological, adopted and legitimised children both inside and outside of marriage.
2. Parents – If there are no children, then the estate will pass to the parents of the deceased. If both parents are alive then they will inherit equally but if there is just one then they will received the whole estate. If the father or second parent is not named on the birth certificate of the deceased, and they were not married to the deceased’s first parent at the time of birth then they are treated as having pre-deceased the deceased unless anything can be proven otherwise.
3. Whole blood siblings of the deceased. This means siblings who share the same mother and father of the deceased will inherit their siblings estate in equal shares if more than one.
4. Half-blood siblings. This means siblings who only share one parent with the deceased will inherit their half siblings estate in equal shares if more than one.
5. Grandparents of the deceased in equal share if more than one.
6. Aunts or uncles of whole blood.
7. Aunts and uncles of half-blood.
8. The Crown, Duchy of Lancashire or Duke of Cornwall. This is called an unclaimed estate, which passes to the state.

At Wilson Browne, we are experienced in providing tailored solutions to help you provide for your family for the future.

Contact our team today or call 0800 088 6004 to book an appointment with an expert from our Private Client team.