What happens when you die without a will?

When a person dies without having made a will, their estate is distributed in accordance with Intestacy rules. These rules determine who inherits the estate based on family relationships, which may not be what the deceased had wanted.

What are Intestacy Rules?

When a person dies intestate, meaning that they have not left a valid will, UK law dictates how their estate is distributed. The Intestacy rules are a fixed set of laws that outline the order of inheritance based on the deceased’s family members.

In some circumstances, the intestacy rules may create unwanted outcomes. For example, unmarried partners will not inherit anything under the rules, even if the deceased would have wanted them to. This is one reason why having a valid will in place is essential.

Key points of the Intestacy Rules

1. If you are married or in a Civil Partnership

If the deceased was married or in a civil partnership, the spouse or civil partner inherits most or all of the estate, depending on the existence of other relatives like children, parents or siblings.

• With children: The surviving spouse or civil partner inherits the first £322,000 of the estate, all personal belongings and half of the remaining estate. The other half of the remainder is split equally between the children (or grandchildren, if a child has already died).
• Without children: The spouse or civil partner inherits the entire estate.

2. If You Have Children but No Spouse or Civil Partner

If there is no surviving spouse or civil partner, the estate is divided equally among the deceased’s children. If a child has already passed away, their share is divided among their children (the deceased’s grandchildren).

3. If You Are Unmarried and Have No Children

If the deceased is not married and has no children, the estate is passed to the nearest living relatives in a specific order:

• Parents: If both parents are alive, they will inherit the entire estate equally.
• Siblings: If no parents are alive, the estate is divided equally among full siblings. If a sibling has passed away, their children (the deceased’s nieces or nephews) inherit their share.
• Other relatives: If there are no parents or siblings, the estate may pass to other relatives such as grandparents, uncles, aunts or cousins, depending on who is alive.

4. If no relatives can be found

If no living relatives can be identified, the estate passes to the Crown or to the government. This process is called bona vacantia, meaning “ownerless goods.”

Potential Issues with Intestacy Rules

Whilst the Intestacy rules ensure that close relatives receive an inheritance, they do not account for every situation. Some issues with Intestacy rules may include: –

• Unmarried couples – unmarried partners have no right to inherit under the intestacy rules, even if they have been together for several years, which can leave them without financial support.
• Complex family structures – In some family structures, especially where step-children are includedor half-siblings or children from previous relationships, the intestacy rules may not reflect what the deceased would have wanted.
• Tax implications – Without planning, dying intestate can also lead to increased tax liabilities.

How can the Intestacy Rules be avoided?

The problems can be avoided by creating a will that clearly sets out your wishes.

In conclusion, the Intestacy rules are important in circumstances where a person hasn’t made a will however, they do not account for modern family situations or individual preferences or unmarried couples.

By making a Will, you can ensure that your estate is passed in accordance with your wishes and protect your loved ones who might be overlooked.

How can Taylor Bracewell’s Wills, Probate & Trusts team help?

If you wish to make a will to avoid your estate being distributed in accordance with the intestacy rules, you can contact our Wills, Probate & Trusts team on 01302 341414 or 0114 272 1884. Alternatively, you can fill out our online enquiry form.