Intestacy rules

If you die without a valid will, your estate is distributed according to the intestacy rules. This means that you have no control over who inherits your assets. For instance, unmarried partners and stepchildren have no right to inherit under intestacy rules, which could cause them financial difficulties.

Dying without a valid will can also make it harder to administer your estate . This means it could take a while for your assets to be distributed, and there could be disputes over what each person stands to inherit.

If you want to ensure your wishes are respected and your loved ones are taken care of, you may want to consider creating a will.

In England and Wales, if the deceased passes away intestate (without a valid will), then their estate will be distributed depending on their family situation:

1. If they had a spouse/civil partner but no children or grandchildren - the spouse/civil partner becomes the sole beneficiary of the deceased’s estate.
2. If they had a spouse/civil partner, children or grandchildren - the spouse/civil partner is entitled to the deceased’s personal effects, plus up to £322,000 of their estate and half of any remaining balance after that. The children would receive the other half of the remaining balance once they reach the age of 18. This remaining balance would be shared equally between them ^{Footnote [1]}. If the children had passed away before them (the deceased), however, the remaining balance would pass on to their grandchildren instead.
3. If they had children or grandchildren but no spouse/civil partner - their estate would be passed on to their living children. If their children had passed away before them,  the estate would instead be passed on to their living grandchildren. If their grandchildren had already passed away, the estate would be distributed successively to the deceased’s other family members, eg parents, brothers and sisters, grandparents, uncles and aunts, and so on.
4. If they had no relatives - the following would take all remaining assets left behind, depending on where the deceased lived at the time of their death:
   - The Crown
   - The Duchy of Lancaster
   - The Duchy of Cornwall

Information on taxation is based on our understanding of current UK legislation and practice. However, tax rules may change in the future.

Some people can’t inherit under intestacy rules, even if they’re a close family member or an important part of your life. These people include:

• Unmarried partners. Unless married or in a civil partnership, partners have no automatic right to inherit. Note that common law marriage does not exist in the UK, so you will need to marry to be included under the rules of intestacy as a married partner, or enter into a civil partnership.
• Stepchildren, unless they are legally adopted by the deceased.
• Friends and carers. Non-family members, regardless of their relationship with the deceased, are not entitled to inherit.

Without a will, these people may be left without any financial support or benefits from your estate. A will could help to ensure all your loved ones are considered.

Yes, intestacy rules can be challenged, but successful challenges are rare, complex, and require legal advice.

Challenges are usually based on claims that the intestacy rules have unfairly excluded someone or haven’t left the deceased’s dependent(s) with enough to live comfortably. This may involve bringing a claim under the Inheritance (Provision for Family and Dependants) Act 1975, which allows certain people to seek a reasonable amount of finances from the estate.

It’s important to get legal advice if you want to challenge the distribution of an estate under intestacy rules.

Assets held under Trust are governed by the terms of the Trust, rather than by intestacy rules. A Trust is a legal arrangement where one or more people hold and manage assets for the benefit of others. They enable you to specify exactly how your assets should be managed and distributed after your death, giving you greater control and flexibility than intestacy rules. You can place assets, such as your life insurance, into a Trust, if you feel this would suit your needs.

Creating a Trust can help you to protect your assets for future generations, ensure that they are used for specific purposes, or to provide for loved ones who are not covered by intestacy rules.

You should seek professional legal advice when considering a Trust, as it has legal and tax implications.