It’s all relative if you do not have a Will

It is easy to assume that in the absence of a Will, any assets/inheritance will go to your partner, but this is not necessarily the case. If you haven’t made a Will nominating executors and outlining the beneficiaries you wish to inherit your estate, the rules of intestacy will kick in.

This article explains how the rules of Intestacy work and what you can do to avoid any unnecessary or upsetting disputes between loved ones after your death.

When someone dies without making a Will, the rules of intestacy generally follow a standard framework designed to ensure that the deceased’s assets are distributed among their closest relatives before they become government property. The order in which it works is as follows:

1. Spouse or Civil Partner: The surviving spouse or civil partner typically receives the largest share of the estate, or the whole estate if there are no children. This also applies even if the surviving spouse and the deceased are separated but not yet divorced.
2. Children: Any surviving children (adopted or biological) of the deceased usually share the remainder of the estate after the spouse’s entitlement is deducted. If there is no surviving spouse, the children inherit the entire estate. If children predecease, their share is divided between their own children, grandchildren etc., known as ‘issue’.
3. Parents: If the deceased has no surviving spouse or children with no issue, the estate then passes to their parents.
4. Siblings: In the absence of a spouse, children or parents, siblings inherit the estate. As with children, their entitlement extends to their issue.
5. Extended Family: If there are no immediate family members, the estate may be distributed to more distant surviving relatives, such as grandparents, aunts, uncles, and cousins.
6. The State: If the deceased has no surviving relatives, the estate then becomes government property.

While this system offers multiple opportunities to keep any inheritance in the family when it comes to stepchildren or unmarried couples, there is no obligation under intestacy laws for them to inherit anything, so having a Will that sets out any inheritance you want them to receive is vital. It may also prevent unintended relatives from unexpectedly inheriting.

If there are no living relatives, spouses or extended family members, the estate will undergo the process of escheatment. This process is determined by the government and includes various steps that must be taken before the estate and assets become permanent property of the crown.

1. Referral to the Bona Vacantia Division: The estate is referred to the Bona Vacantia Division (BVD) of the Government Legal Department. Bona Vacantia, meaning “ownerless goods,” is the legal term for property that passes to the Crown (the government) because there are no heirs.
2. Estate Administration: The BVD takes control of the estate, managing and settling any outstanding debts, taxes, and other obligations. They ensure that all possible steps are taken to locate any potential relatives.
3. Search for Heirs: The BVD makes an extensive effort to locate any heirs, including advertising for claimants and searching genealogical records.
4. Claims by Relatives: If any relatives come forward within 12 years from the date of death (or up to 30 years under certain conditions), they can make a claim on the estate.
5. Transfer to the Crown: If no heirs are found within the specified period, the estate becomes the permanent property of the Crown. The assets are then used to support the public purse, contributing to government funds.

To avoid your assets or estate passing through the rules of intestacy or ending up as government property, you must have a Will in place. The friendly team at Backhouse Solicitors can help you to make a proper, tax-efficient Will to ensure that your wishes are properly considered and carried out when you die.

Contact the team today to book a free 30-minute appointment with one of our expert solicitors.

Tel:          01245 893400
Email:     info@backhouse-solicitors.co.uk
Visit:       17 Duke Street, Chelmsford, CM1 1JU
Or send us a message through the Contact Us page on this website.