Partner Elizabeth Short, in our Wills, Probate, Tax & Trusts team, explains what can happen if you don't have a Will and the misconceptions that can arise.
We often come across two quite stark misconceptions about not making a Will. The first is that if you don’t make a Will your estate will end up with “your family” (often interpreted as the family you are closest to in terms of day to day relationships but not necessarily the closest in terms of the law) or, at the other end of the scale, with “the government.”
It is always best to make a Will if you can do so.
If you die without leaving a Will then the law sets out certain rules confirming what will happen to your Estate. These are known as the “Intestacy Rules” and are detailed in the Administration of Estates Act 1925 which have recently received a slight update in the form of an increased “statutory legacy.”
Along with many areas of law, some people perceive that the Intestacy Rules do not reflect the modern world in which we live.
In the first instance, the rules distinguish between those who are married/in a civil partnership and those who are not. It is then a case of considering any children and their descendants.
If the deceased was not married or in a civil partnership and did not have children, the rules then go on to favour, parents, siblings, uncles/aunts, cousins etc.
We are experienced in assisting clients in all manner of situations – please do call our Team for an initial call or discussion about what might be best for your circumstances.
It is very rare for the Intestacy Rules to mean that your estate will end up with the government (in legal speak this is known as “Bona Vacantia”) and the rules do not favour the nuances of modern life.
Some examples of how the rules operate are set out below:
First example
Barbie has lived with Ken for the past 20 years. They are not married. They do not have children together but Ken has three adult children from a previous relationship. The house they live in is owned by Ken. Ken has not seen his three children for several years and Barbie has never met them.
Ken dies. He does not have a Will. They always assumed everything would pass to Barbie.
Barbie will receive nothing.
Ken’s children will receive his estate in equal shares.
Second example
Tom and Jerry have been married for 6 months and have recently welcomed a baby via surrogate.
Jerry dies in a tragic accident. He never got round to finalizing his Will.
Tom will receive the first £322,000 plus any personal possessions. Everything else will be shared between Tom and the baby in equal shares. The baby’s money will be held on “statutory trusts” until they are 18.
Third example
Ariel has lived on her own for as long as she can remember. Her parents died many years ago and she still lives in the family home. Ariel has never married and has no children. Her parents were only children. Ariel has no immediate family but she is close to the daughter of her mother’s cousin, Freida – she visits her weekly and does her shopping. Ariel has always seen her as the sister she never had.
Ariel knows there was a big rift on her father’s side of the family and always recalls how he became estranged from them when she was very young.
Ariel’s health has sadly taken a turn for the worse and although she’s thought about her Will she has never been able to decide how best to look after Freida. She dies without a Will.
Under the Intestacy rules everything will pass to Ariel’s parents cousins and so although Frieda will inherit something this will be a small proportion of the overall estate and cousins on Ariel’s father’s side of the family will also inherit. This is the last thing Ariel would have wanted.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
