It’s important to have a will in place to make sure that your assets are distributed as you would like them to be.
But what happens to my assets if I die without a will in place?
In this article, Wills & Tax Partner Lee Young answers that question and looks at who receives your inheritance in various scenarios.
This article was updated on 26/07/2023 to reflect tha changes to the amount of statutory legacy payable.
What is intestacy?
The term ‘intestate’ refers to dying without a will in place. When someone dies intestate, their assets will be distributed in accordance with the intestacy rules.
What are the intestacy rules?
The intestacy rules are the legal rules that set out the way that your assets will be divided if you die without a valid will.
My colleague Lauren Smallwood has outlined what intestacy is in more detail, what it means for you and the best time to write a Will. You can watch her discuss this in video format below, or read on for the text version...
Who can inherit if there is no will?
Below we’ve outlined who will inherit what if you die intestate, according to the intestacy rules.
Remember, if you're unhappy with the way in which your assets will be dealt in any of the scenarios below - you need to write a will to explicitly state what you want to happen to your estate when you die.
What does my partner inherit if I die intestate?
If you have no children, your spouse or civil partner will inherit everything.
If you have children, then your spouse or civil partner will inherit everything up to the value of £322,000 and half of the remaining estate.
The above only applies if you are married or in a civil partnership at the time of your death.
What do my children inherit if I die intestate?
If you are not married or in a civil partnership, then your children will inherit everything (shared equally between them).
If you are married or in a civil partnership and have children, then your spouse will inherit everything up to the value of £322,000 and half of the remaining estate. The other half of the estate will be shared equally between your children.
Do children under 18 receive inheritances under the intestacy rules?
You may be wondering whether your children can inherit from you if you die intestate and they are under the age of 18.
Well, according to the intestacy rules, their share of the estate is held on trust for them, by trustees, until they reach the age of 18.
The trustees will be whoever took out the grant of letters of administration to deal with the estate in the first place, and because of the rules that govern that, are likely to be family members. This may be your spouse or ex-partner, depending on your circumstances when you die.
What happens if I die intestate, have no children and am not married?
If you die intestate, have no children and are not married, then everything will be shared equally among one of the following groups (if they exist).
This list is in order of priority:
- Parents
- Siblings (or their children, if any of them die before you)
- Grandparents
- Uncles and aunts (or their children, if any of them dies before you)
What does my partner inherit if we are not married?
If you die intestate, your partner will inherit nothing if you are not married or in a civil partnership (even if you live together).
The children of your partner (who are not your biological children) will also receive nothing, even if they were financially dependent on you.
This is one of the issues with intestacy rules.
This might give rise to a claim against your estate from your partner, or their children.
What risks are there to dying intestate?
If no relatives can be found closer than aunts and uncles (or their descendants), then the crown will inherit your assets.
For people with no close relations, you may want to donate the money to charity. If you don’t outline this in a will, then it won’t happen.
Inheritance tax implications of dying intestate
If you die intestate, your family and close relatives may be left with an unavoidable inheritance tax bill.
Any estate that passes to your spouse, civil partner, or charities is exempt from inheritance tax, but otherwise inheritance tax will be charged if your estate exceeds the available nil rate bands.
So, if you’re married with children and die intestate, your children may well have to pay inheritance tax on their share of your estate.
Why a will is better than intestacy
- You can tailor which assets each person inherits
- You can make sure your assets are passed to your chosen beneficiaries, and not just those whom the law deems suitable
- You can ensure that your unmarried partner, and potentially their children, receive what you want to give them
- You can prevent assets being inherited by the crown (if no close relatives are found)
- You can choose a charity/charities for money to be left to
- You can make sure your ex-partner is entitled to inheritance if that is your wish
- You can prevent your children or other young people inheriting until they are much older than 18, if that feels too young or you fear they might “blow the money”
- You can name executors, trustees and guardians
- Wills are generally more inheritance tax efficient than the intestacy rules.
Intestacy Flowchart
If you want a further understanding of how your assets will be divided if you die intestate, you can complete our intestacy flowchart.
The flowchart consists of yes or no questions which will help clear up how your estate will be dealt with, if you die without a will.
Access the flowchart here.
Wills & Tax Solicitors
At Frettens, we can help you create a will which best represents your wishes for your assets.
You can speak to a member of our bright and experienced team by calling 01202 499255 or by filling out the form at the top of this page.
The team can also provide advice to relatives of those who have died intestate. If you have any questions on asset distribution, or anything else, feel free to get in touch.
We offer a free initial chat for all new clients.
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