What is intestacy and what happens if you pass away without a will?
Intestacy is the legal term for when someone dies without leaving a valid will. When a person dies without leaving a valid will, their property (the estate) must be shared out according to certain rules. These are called the rules of intestacy, which are set out in the The Family Provision (Intestate Succession) Order 1981.
Only married spouses, civil partners and some other close relatives can inherit your assets under the rules of intestacy. If someone makes a will but it is not legally valid, the rules of intestacy decide how the estate will be shared out, not the wishes expressed in the will. This is why it’s important to ensure that your will is written and signed correctly and is legally binding.
The intestacy rules are quite complex, but they can be summarised as follows:
If the deceased is survived by a spouse or civil partner, they will inherit the entire estate.
If the deceased is survived by children, the spouse or civil partner will inherit the first £322,000 of the estate, plus half of the remainder. The children will inherit the other half of the remainder in equal shares.
If the deceased is survived by parents, they will inherit the entire estate if there are no children. If there are children, the parents will inherit half of the estate, with the children inheriting the other half in equal shares.
If the deceased is survived by siblings or their descendants, they will inherit the entire estate.
If the deceased is survived by no relatives, the estate will go to the Crown.
It is important to note that these are just the basic rules. There are a number of other factors that can affect the distribution of an estate under intestacy, such as the age of the deceased, whether they were married or in a civil partnership, and whether they had any children.
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. Similarly, if you are separated from your partner but not legally divorced or your civil partnership has not legally ended, then your partner will be entitled to a share of your estate.
Additionally, If a couple were beneficial joint tenants at the time of the death, when the first partner dies, the surviving partner will automatically inherit the other partner's share of the property. However, if the partners are tenants in common, the surviving partner does not automatically inherit the other person's share. Couples may also have joint bank or building society accounts. If one dies, the other partner will automatically inherit the whole of the money.
If you die without a will, you may not be able to ensure that your assets are distributed in the way that you would have wanted. This could have a significant impact on your loved ones, and it could also lead to legal disputes. It is therefore important to make a will, even if you think that your estate is not very complicated.
Here are some of the reasons why it is important to have a will:
To ensure that your assets are distributed in the way that you want.
To avoid legal disputes among your loved ones.
To appoint guardians for your children if you die before they reach 18.
To make specific gifts to people or charities.
To save your loved ones time, legal fees and stress when you pass away.
If you do not have a will, it is important to make sure you write one as soon as possible to avoid any issues arising. If you have a relatively straightforward estate, the Will Easy online platform is a great way to create a legally binding will.
