Intestacy Rules – Who gets what under the rules of intestacy
We all know how important it is to have a will, yet millions of us put it off and, in doing so, run the risk of the state determining how our assets should be distributed on our death.
Lawyers describe someone who passes away without a will as dying intestate.
It is the Intestacy Rules (set out in the Administration of Estates Act 1925) that determine who gets what if you die without making a will.
Here is a quick guide to the pecking order under the Intestacy Rules.
You are married and your estate is worth less than £125,000
Under the Intestacy Rules, your surviving spouse gets everything.
You are married, your estate is worth more than £125,000 but you don’t have any surviving relatives.
Again under the Intestacy Rules, your surviving spouse gets it all.
You are married, your estate is worth more than £125,000 and you have children.
Under the Intestacy Rules, it now starts to get interesting and potentially problematic for the surviving spouse. The first £125,000 will go to the spouse but they will only get a life interest in half of whatever is left over. The other half will go to the children immediately with the rest following when the life interest ends on the death of the spouse.
If any child should pre-decease you, then their own children (your grandchildren), would get their parent’s share.
You are married, your estate is worth more than £125,000, you don’t have children but you do have surviving relatives.
Under the Intestacy Rules, the surviving spouse’s automatic share goes up to £200,000. Half of anything left over also goes to the spouse. The other half goes to the surviving relatives in this order:
- Parents
- Brothers or sisters or their children
- Half Brothers or sisters or their children
- Grandparents
- Uncles or aunts or their children
- Half uncles and aunts or their children
You are not married but have children
Under the Intestacy Rules your children will inherit. Again, if a child has pre-deceased you, then their children will get their parent’s share
You are not married and have no children
Under the Intestacy Rules, your surviving relatives will inherit in the following order:
- Parents
- Brothers or sisters or their children
- Half brother or sisters or their children
- Grandparents
- Uncles or aunts or their children
- Half uncles and aunts or their children
If you have no surviving parents, siblings, grandparents, uncles or aunts then under the Intestacy Rules, everything will go to the Crown!
Remember
- The Intestacy Rules do not recognise unmarried “common law” partners.
- The Intestacy Rules allow a 28 day survivorship period.
- The effect of the Intestacy Rules can be inequitable and unfair, especially for surviving spouses. Surviving dependants may be entitled to seek more adequate provisions by making a claim under the Inheritance (Provision for Family and Dependants) Act 1975.
- However, the best way of avoiding the unintended consequences of the Intestacy Rules is quite simply to make a will. It is easy to do and cheaper then you probably think.
If you require advice about the Intestacy Rules or would like to make a claim under the Inheritance Act for more adequate provision then contact us now.