Rules of Intestacy in England & Wales
Dying without leaving a Will means the government dictates who gets what of your estate, depending on your domestic circumstances. This of course may be far from your wishes. Intestacy occurs not only when a will hasn’t been made but if a will cannot be located, or if it has been left unsigned!
Married with Children (separated people are treated under these rules as still being married)
- Your spouse gets your car and house contents the first £250,000 of your estate and interest on half of any surplus (only interest, your spouse cannot touch the capital)
- Your children (stepchildren get nothing) get half of any excess over £250,000 outright the other half of the excess when your spouse has also died
Married with No Children but with Parents and/or Brothers and Sisters
- Your spouse gets your car and house contents plus the first £450,000 of your estate and half of any excess over £450,000 outright. Your parents or (if none alive) your brothers and sisters get the balance, ie. half of any excess over £450,000 outright
Married with No children, No Parents or Brothers and Sisters
- Your spouse gets everything
Single, Widowed or Divorced (but not separated)
- Everything goes to your children (if any), otherwise to your parents (if alive), otherwise to your brothers and sisters, or their children, otherwise your grandparents (if alive), otherwise your uncles and aunts or their children, otherwise to the government!
Risks
Dying without a will may inadvertently disinherit the people closest to you.
Common scenarios include the following:
Unmarried partners will never benefit if you die intestate, even if you live together. The only way to make sure your estate is left to your partner is to get married (or enter a civil partnership) or to write a will.
Step-children or foster children cannot inherit from your estate unless you
explicitly provide for them in a will.
In England and Wales, any previous will is invalidated when you marry. Unless you make a new will, your estate will be divided according to the intestacy rules. This means your new spouse will inherit the majority of your assets, potentially leaving nothing for your children.
The rules don’t take people’s needs into account. If another person is dependent on you, they could be cut off if the rules don’t allow them to inherit.
Your estate could end up being passed to a distant relative, or estranged family member.
Furthermore the costs that one may leave to family who may have to use a legal firm to administer will far outweigh the cost of a will. Administration can easily cost circa £1400 plus which may appear nonsensical when the cost of a basic will starts at £79 or lower when special offers are available.
