Oak Shields Estate Planning Limited
Chapel House, Leicester Road
Loughborough, LE11 2AF
Your Legacy, Our Priority.
What happens if I pass away
without a Will?
Life is full of surprises and, while we can't predict everything, we can plan ahead. Ever wondered what happens if you pass away without a Will? In this article we look into what can happen to your estate after you're gone.
When you die without a Will, or more accurately without a valid Will, your estate falls into intestacy. This basically means a situation in which someone dies without leaving instructions about to whom your assets should be given. Your assets will then be distributed according to the Rule of Intestacy.
What is the
Rule of Intestacy?
Some people may assume that their spouse will inherit everything if they pass away without a Will. This is actually not true under the Rule of Intestacy.
Your estate will be distributed according to a specific order if you leave no Will, outlined in section 46 of the Administration of Estates Act 1925, which applies in England and Wales.
Married or Civil Partnership
The first person to receive your estate is your surviving spouse. He or she will receive £322,000* out of your estate, all your personal possessions and any jointly owned assets. The remaining assets will be distributed to your spouse and children, shared equally.
Unmarried, Divorced or Widowed
with Children
All of your estate will be divided equally between your children. However, any unmarried partner and their children will not be entitled to inherit anything from your estate, no matter for how long you have been living together.
Single
with No Children
If you are single, and have no child, the next person who will inherit your estate will be your parents, siblings or other relatives accordingly.
What if my children are
Under 18?
They will be classified as minors if they are below 18. If they are entitled to inheritance, the assets will be held in Trust by their surviving parents until they turn 18.
What about my
unmarried partner?
Unfortunately, an unmarried partner and their children have no entitlement to your estate under intestacy.
Inheritance Tax on Intestacy
An intestate estate is still liable to pay inheritance tax if it exceeds the allowance. Your surviving family members will have to apply to become an administrator, then they will need to complete the inheritance tax calculation and settle the tax bill.
However, applying for a Letter of Administration can be a very time consuming and stressful process. It could take around 16 - 20 weeks for a decision to be made, meanwhile an intestate estate is likely to take more time to proceed, as the Court will need to decide who should be the administrator of the estate.
Avoid the hardship
Having a Will in place allows you to express your wishes as well as effectively protect the inheritance of your loved ones. This can also avoid disappointment and potential disputes. Speak to our professional team today to put your Will in place.
* With effect from 26 July 2023, the amount of Statutory Legacy has been increased from £270,000 to £322,000 under The Administration of Estate Act 1925 (Fixed Net Sum) Order 2023.
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Oak Shields Estate Planning Limited,
Chapel House, Leicester Road,
Loughborough, LE11 2AF
Registered in England and Wales Company Number: 13136605 VAT Registration Number: 370 0679 03 Registered Address: Chapel House, Leicester Road, Loughborough, LE11 2AF
The Society of Will Writers Membership Number: MA6706202/21
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