Experiencing the loss of a loved one is a profoundly emotional event, and in the absence of a Will to direct the division of their assets, it can result in bewilderment and doubt for the surviving individuals.
If you die without a valid Will, your property will be shared out according to certain rules. These are called the rules of intestacy.
Let's explore this subject further to grasp the significance of estate planning.
The Impact of Intestacy
Intestacy arises when an individual passes away without a will or when their will is considered invalid. In such instances, the distribution of the deceased person's estate follows legal directives rather than their specific wishes.
When someone dies without a will, it is referred to as 'dying intestate'. Dealing with the estate in these circumstances can become more intricate due to a series of procedures known as the rules of intestacy. The absence of a valid Will often results in the inability to fulfill the deceased's final wishes as intended, given the stipulations outlined by the rules.
For instance, the rules of intestacy do not account for unmarried partners and non-relatives, which means they may be unable to claim any inheritance in the absence of a Will.
Distribution of Assets Under Intestacy
The distribution of assets under UK intestacy rules depends on the deceased’s family structure.
This flowchart should help to understand these rules.
As you can see there is a hierarchy of who inherits the estate if the person who dies was not married or in a civil partnership.
Your estate will pass to the following individuals in priority order:
Your children or grandchildren
Your parents
Your siblings of whole blood (or their children)
Any half-siblings or their children
Your grandparents
Your uncles and aunts of whole blood (or their children)
Your uncles and aunts of half-blood, or their children
The Crown Legal publication
Who cannot inherit under the rules of intestacy?
Regrettably, the laws of intestacy fail to accommodate modern family structures. Numerous individuals are left without entitlement to inherit any assets in cases where a deceased person has not left a legally valid Will.These include:
Unmarried partners
Same-sex partners who are not in a civil partnership
Stepchildren
Close friends
Relations by marriage (in-laws)
Are all my assets subject to intestacy rules?
There are also some items that are not subject to the rules of intestacy. These include:
Property or bank accounts, owned as a joint tenant - this will pass automatically to the surviving joint owner (Right of Survivorship)
A life policy or pension scheme with a nominated beneficiary - this will pass on to a nominated beneficiary
Life interest held under a trust - this will pass in accordance with the terms of the trust
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