UK intestacy rules govern the distribution of an individual’s estate when they die without a will. If someone passes away intestate (without a will), their estate—comprising money, property, possessions, and debt—is distributed according to these rules. In England and Wales, the intestacy rules dictate that the estate typically goes to the closest living relative. This could mean the spouse or civil partner inheriting the estate, or if there’s no spouse or civil partner, it passes to the next blood relative as determined by the intestacy rules. It’s important to note that legally adopted children are considered blood relatives under these rules.
Who is eligible to inherit?
Married couples or civil partners are the primary beneficiaries of an intestate estate if they were married or in a civil partnership at the time of death. They are entitled to inherit from the estate, but this right does not extend to divorced spouses or those whose civil partnership has been legally dissolved. It’s crucial to highlight that unmarried partners, regardless of the duration of their relationship or whether they have children together, do not inherit under UK intestacy laws.
The distribution of an estate under the UK Intestacy Rules follows a specific order when someone dies without a valid will:
- Deceased with a Spouse or Civil Partner but No Children:
- The surviving spouse or civil partner inherits the entire estate.
- Deceased with a Spouse or Civil Partner and Children:
- If the deceased was married or in a civil partnership and had children, and the estate is valued at over £270,000,
- The surviving spouse or civil partner receives all personal possessions, the first £270,000 of the estate, and half of the remaining estate.
- The remaining estate is divided equally among the deceased’s blood-related or legally adopted children. Stepchildren do not inherit.
- If the deceased was married or in a civil partnership and had children, and the estate is valued at over £270,000,
- Deceased Unmarried with Children:
- The estate is equally divided among the deceased’s blood-related or legally adopted children.
- Deceased, Unmarried, with No Children:
- Parents:
- If the deceased had no children but living parents, the estate is shared equally between the surviving parents.
- Siblings (brothers and sisters):
- If there are no living parents but surviving siblings, the estate is divided equally among full siblings.
- Half Siblings:
- In the absence of full siblings, half-siblings inherit next.
- Grandparents:
- If there are no siblings, the estate passes to living grandparents who equally share the inheritance.
- Aunts and Uncles:
- If no grandparents are alive, aunts and uncles inherit the estate equally.
- Crown:
- If there are no surviving relatives, as mentioned above, the estate passes to the Crown.
- Parents:
What if there are no eligible heirs?
If no eligible heirs are identified for an intestate estate, the estate passes to the Crown, a situation known as bona vacantia.
Today’s family structures are diverse, making it challenging to locate potential heirs, even with the assistance of family tracing services or genealogists. Before the estate is claimed by the Crown, the Government Legal Department (GLD) publishes deceased estate notices in The Gazette. These notices aim to protect executors and administrators of unclaimed estates. Additionally, the list of unclaimed estates is publicly accessible and searchable on the government website. Potential beneficiaries can view this list and, if they believe they are entitled, follow a process to identify themselves.
What happens to jointly owned property?
We’ve discussed that unmarried couples and those not in a civil partnership won’t inherit under intestacy rules, regardless of living arrangements before a partner’s death. But what happens to jointly owned property if the surviving joint owner isn’t entitled to inherit?
The way the property is jointly owned dictates inheritance under intestacy laws. In joint tenancy, the surviving owner automatically inherits the deceased owner’s share. However, in tenancy in common, the surviving owner doesn’t automatically inherit the deceased owner’s share.
What are the drawbacks of intestate succession?
In addition to loved ones potentially being excluded from inheritance due to intestacy rules, intestate estates may not be divided tax efficiently. This lack of control can mean assets aren’t distributed according to one’s wishes, leaving family members facing significant inheritance tax bills that proper estate planning could have avoided. Intestate succession can also lead to family conflict and added stress for those left behind.
Challenging Intestacy Rules
Under the Inheritance (Provision for Family and Dependants) Act 1975, individuals have the right to apply to the Court to redistribute an intestate estate if the initial distribution failed to provide reasonable financial support for them as a dependent of the deceased.
However, eligibility to apply is limited to specific individuals, including the spouse or civil partner of the deceased, a former spouse or civil partner, someone who lived with the deceased for at least two years, a child of the deceased or someone treated as a child of the deceased, or someone who was financially maintained by the deceased at the time of death.
Deed of Variation on intestacy
Creating a deed of variation or family arrangement involves beneficiaries rearranging the distribution details of the intestate estate. This must be completed within two years of the death, and all beneficiaries under the rules of intestacy must agree to the changes. It may involve individuals who do not inherit under the intestacy rules receiving a portion of the estate or adjusting the inheritance amounts compared to what is specified under the UK intestacy rules.
Law Commission’s Proposals for Reform
The Law Commission has proposed reforms to intestacy rules to enhance fairness and ensure that an intestate estate can be distributed to family members and loved ones in a manner that aligns better with modern society.
Proposed reforms include extending protections and beneficiary rights to unmarried cohabitants who have lived together for more than five years, allowing them to inherit from a deceased cohabitant under UK intestacy rules.
With an estimated 40% of adults lacking a will, distribution of estates under intestacy rules can lead to loved ones inheriting unfairly small amounts or nothing at all. These reforms aim to streamline intestate succession, making it more equitable for family members and loved ones.
Law Intestacy is Complex
Probate law can be intricate, and the consequences of dying intestate are often overlooked. Unmarried couples and their children do not automatically inherit under intestacy rules when a partner dies without a will.
The Law Commission’s proposed reforms aim to address these issues and potentially reshape how intestate estates are distributed. If these proposals become law, they could have a profound impact on beneficiary rights and the experiences of family members and close friends following the death of a loved one.
