What are the UK Rules of intestacy?
Intestate – what does it mean?
You’ve probably heard the word and might even know that it means dying without a valid Will in place.
When a person dies “intestate” the law states that the deceased’s estate has to be distributed according to the rules of intestacy. These rules are dictated by the law in the country where the deceased lived so they can vary.
It is easy to assume that when you die your estate will simply pass on to your closest family but with so many extended and blended families it may not always be as straightforward as that. The only way to guarantee that your estate is passed on to those you intend to benefit from it, a valid Will is the only way.
Research has shown that:
- 45% of UK adults have a Will
- 33% of adults with children in the household have written a Will
- 30% of adults who are living as married have a Will
Couples who have chosen to cohabit are particularly vulnerable as it is unlikely that their wishes would be followed if they die intestate.
So what are The rules of Intestacy?
In England and Wales when the Deceased has a surviving spouse or civil partner and the deceased’s estate is worth less than £270,000, the spouse or civil partner is entitled to inherit everything.
When there are joint assets these are passed on by survivorship unless there is a specific directive to state otherwise.
If the deceased’s estate is worth in excess of £270,000 and there are surviving children, the children will receive half of the remaining estate over the £270,000 threshold and the spouse or civil partner is entitled to the other half.
It is important to remember that regardless of the value of the estate, a spouse or civil partner stands to inherit all of the Deceased’s personal belongings if there is no valid Will.
When someone dies without a spouse or civil partner but does have children, the estate is split equally between them. If the children are no longer alive but grandchildren exist then the estate is split between them.
If there are no children or grandchildren the order of priority in England and Wales is:
- Living parents
- Full-blood siblings
- Half-blood siblings
- Grandparents
- Aunts/uncles
- Half-blood aunts/uncles
Scottish Law
It is different in Scotland as great aunts/uncles are entitled after half-blood aunts/uncles. There is also a different legal system in Scotland where Prior Rights and Legal Rights also apply. These rights ensure the surviving spouse/civil partner and children are not disinherited from an estate, but similar to estates in England and Wales, assets may not go to where the immediate family think they should.
If a relative has passed away, their descendants will inherit on their behalf.
When the Deceased had no surviving relatives, the estate would pass to the Crown (or the relevant Duchy of Lancaster or Cornwall if appropriate).
The UK government website has a tool which can help you identify who is entitled to inherit when someone dies without making a Will.
The importance of having a valid Will
One of the most important things you can leave behind is a valid Will leaving clear instructions about your wishes for distributing your estate. When everything is written down it can reduce the stress for loved ones who will be going through a very difficult time.
It is important too, to leave instructions about your wishes for your funeral as this can also cause stress and upset within families. Your wishes may be completely contrary to what everyone might have thought you wanted so taking away all elements of doubt is so much easier for your family and loved ones.
Administering an intestate estate
Estate administration can be a complicated process which is made even more so when there is no Will to follow.
If you find yourself having to administer an estate and you cannot find a Will read our blog to find out what you need to do: https://beesandco.com/blog/how-do-you-find-out-if-a-will-exists/
If you cannot find a Will you can proceed to administer the estate in line with the intestacy rules. The Administrator has legal and financial responsibility for administering the estate, so it is important to ensure that the estate is correctly distributed according to the rules of intestacy. If you have any doubts about the process it is worthwhile seeking professional help as claims can be made many years down the line.
If you have any questions about writing a Will please don’t hesitate to contact us here: https://beesandco.com/contact/
