What Happens When Someone Dies Without a Will?

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It is estimated that two thirds of people die without making a will. The legal term for this is “intestate”.

People often assume that there is no need to make a will. They believe that their assets will merely pass to those closest to them.  However, this is not always the case.

What you need to know about the intestacy rules

The law says that the deceased’s estate will pass in accordance with the intestacy rules, if:

• A Will is not left; or
• For some reason a Will is found but proves to be invalid

Intestacy rules set out who is entitled to inherit from the estate.

Who is entitled to my estate under the intestacy rules?

If you are married or in a registered civil partnership, the first person entitled is your spouse or civil partner.  However they may not be entitled to everything.  This depends on the amount in the estate.

If you die intestate with an estate of, say, £400,000, what would happen?  It does depend upon who survives you.   If you have no children then your estate passes to your husband or wife, but if you leave a child then it becomes quite complicated.

Under the intestacy rules your surviving spouse will receive your personal chattels and £250,000.  What is left is divided into two:

• Half going to the child at once if they are 18 or over and in trust if they are not
• The other half going in trust for the spouse, passing to the child on the spouse’s death

Because a trust arises, two Trustees are required and so if the child is an infant, you will probably need to rope in Uncle Fred or cousin Charlie.

Suppose:

• You are married and or in a civil partnership and there are no children
• You have worked hard and have left an estate of, say, £600,000
• You would prefer that that £600,000 went, free of tax, to your surviving spouse or civil partner

Well, if you do not make a Will, it will not.  The surviving spouse or civil partner will take personal chattels and £450,000, and half the remainder.

The other half may go to your parents, or if there are none, to your brothers and sisters, or to nephews and nieces. Remember, this applies:

• Whether you like those relatives or not
• Whether you think it is appropriate or not

By not making a Will, you put yourself into the hands of the Intestacy Rules – which most people agree are not very attractive.

What about couples who just live together?

The intestacy rules do not take into account couples who just live together, no matter how long they have been together for.

How is the estate administered?

If someone dies without a Will, a Grant of Letters of Administration is applied for, in order to administer the estate.  The person or people entitled to make the application are normally the closest relatives to the deceased.  Again, the intestacy rules confirm who this would be.

What is the consequence of not having a Will?

If you don’t have a Will, it is possible that:

• You won’t manage to look after and protect the people you want to
• The people who end up dealing with your estate either don’t want the job, or aren’t up to it

It is therefore vital that you have a Will in place, however basic, to avoid uncertainty, confusion and delay after your death.