In this Aatos article, we're going to explain what happens when someone in the UK passes away without a Will, which is known as “intestacy”.
We'll also break down these rules of intestacy to show who can inherit and how different family members, like spouses and children, are affected.
What is Intestacy?
Intestacy is what happens when someone dies without a Will.
Essentially, it means there's no written record of what they wanted to do with their belongings or assets. When this happens, certain rules kick in to decide who gets what.
The Intestacy Rules
Here’s how things typically go in England and Wales when dividing up an estate without a Will, following the rules of intestacy:
- First, if the deceased was married or had a civil partner, that person usually gets all of the deceased’s personal belongings, the first £322,000 of the estate, and, if there are any children or grandchildren, half of any of the remaining estate, with the other half being divided between the children or grandchildren, if there are any.
- If there are no children or grandchildren, the spouse or civil partner will inherit everything.
- If the deceased had no children, grandchildren, or spouse/civil partner, then the parents, brothers and sisters, or other close family members will inherit.
Intestacy means that the law decides how your estate is distributed, which may not align with your wishes. By writing a will, you can specify who receives your assets and in what proportions, ensuring that your estate is distributed according to your wishes.
💡 Intestacy laws do not recognise unmarried partners or cohabitants as beneficiaries, which can leave them without any inheritance rights. If you want to provide for your unmarried partner, you must make provisions for them in your Will.
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Intestacy Rules Varies in Different Countries
The rules for what happens when someone dies without a Last Will can vary depending on where they lived.
Intestacy Rules in the UK
In the UK, the rules differ slightly between England and Wales, Scotland, and Northern Ireland - especially in terms of how much the spouse gets compared to the children.
🏴 🏴 England and Wales: As we have already covered, if there are children, the spouse receives all personal belongings, the first £322,000 of the estate, and half of the remaining estate. The other half goes to the children.
🏴 Scotland: The spouse receives the house (up to a value of £473,000), furnishings (up to £29,000), and the first £50,000 of the remaining estate if there are children (or £89,000 if there are no children). The rest of the estate is divided among the spouse and children.
Northern Ireland: Similar to England and Wales, the spouse gets all personal belongings, the first £250,000 of the estate, and half of the rest. The children receive the other half.
Intestacy Rules in Other Countries
Other countries have their own sets of rules, too. Here are some examples for the jurisdictions we get asked about the most:
🇦🇺 Australia: Rules vary by state, but generally, if there is a spouse and children, the spouse usually receives all personal belongings, a set amount from the estate which is called a statutory legacy (the amount of which varies by state), and one-half to one-third of the remaining estate. The children receive the remainder.
🇺🇸 USA: Laws vary significantly between states. Commonly, if there is a spouse and children, the spouse might receive one-third to one-half of the estate, with the rest distributed among the children. States like California and Texas have unique community property rules affecting the division as well.
🇫🇷 France: If there is a spouse and children, the spouse can choose between a quarter of the estate in full ownership or the use of the entirety of the estate for the rest of their life. The children inherit at least three-quarters of the estate.
Read more about disinheritance
Common Complications in Intestacy
When someone dies without a Will, dividing their estate can sometimes get tricky. One common issue is family disputes.
Different family members might have different ideas about who deserves what, especially if the relationships within the family are strained. This can lead to arguments and even legal battles, which can drag on and complicate the distribution process.
Another complication could be claims from unexpected parties. Sometimes, people you might not anticipate, like distant relatives or friends, might come forward claiming they were promised something by the deceased.
These claims can throw a wrench in the proceedings and might require legal intervention to resolve, which can be time-consuming and costly.
Read more: Contesting a Will
Avoiding Intestacy with a Last Will
The best way to avoid these complications is through careful estate planning, and the best way to do that is by drafting a Last Will.
Understanding the rules of intestacy can make a big difference in ensuring your estate is handled as you wish after you're gone. Creating a will is the most effective way to prevent disputes and complications, giving you peace of mind that your wishes will be respected.
