When someone dies without a Will, the distribution of their assets is determined by the rules of intestacy.
These rules are set out in the Administration of Estates Act 1925, which have been amended over time.
Who can inherit under the rules of intestacy?
The rules of intestacy set out a strict hierarchy of relatives who are entitled to inherit a deceased person’s assets, as follows:
- The priority is given to the surviving spouse or civil partner.
- If there is no surviving spouse or civil partner, the next in line are the deceased person’s children.
- If the deceased person has no surviving children, the assets will pass to any grandchildren if their parent has died before the intestate person.
- If there are no grandchildren, no children and no partner, the estate can pass to parents of the deceased, siblings or nieces and nephews.
It’s worth noting that stepchildren, unmarried partners, and close friends do not have any automatic right to inherit under the rules of intestacy.
This can be a significant issue for people who have not made a Will, as their assets may not be distributed in the way they would have wanted.
If there are no surviving relatives, then the Crown inherits the estate, which is known as bona vacantia.
If the Crown inherits the estate and you believe you are entitled to a grant, despite not being a relative of the deceased, you will need to get in touch with a solicitor to discuss this.
How are assets distributed under the rules of intestacy?
The way that assets are distributed under the rules of intestacy can be complex, and it’s worth seeking legal advice if you are dealing with the estate of someone who has died without a Will.
If the deceased person has a surviving spouse or civil partner, they will inherit the first £270,000 of the estate, along with all the deceased person’s personal belongings.
If the estate is worth more than £270,000, the remaining assets will be divided as follows:
- If there are no surviving children, the spouse or civil partner will inherit everything.
- If there are surviving children, the spouse or civil partner will inherit the first £270,000 of the estate, plus half of the remaining assets. The other half will be divided equally between the children.
- What about jointly owned assets?
It’s worth noting that jointly owned assets are not included in the estate of the person who has died and will pass directly to the surviving joint owner.
This can include things like property, bank accounts, and investments.
However, if the jointly owned assets are owned as tenants in common, rather than joint tenants, the deceased person’s share will form part of their estate and will be distributed in accordance with the rules of intestacy.
Not making a Will can have serious consequences on the way your estate is distributed and can result in a complicated and long process for your loved ones.
Get in touch with our expert solicitors now to discuss writing and updating your Will to avoid any future issues.