Understanding the Rules of Intestacy in the UK
Intestacy rules determine how an estate is distributed when someone dies without a valid will (intestate). The rules vary across different parts of the UK and understanding them is crucial for ensuring your clients' estates are managed according to their wishes.
What are the intestacy rules?
If an individual dies intestate, their estate is distributed according to intestacy laws, which may not align with their wishes. This is especially problematic for cohabitees, who account for about one in three couples taking life cover.
The rules differ for England and Wales, Northern Ireland and Scotland. Let’s look at these differences:
England & Wales |
Northern Ireland |
Scotland |
|
Spouse or Civil Partner1 |
No children The spouse or civil partner inherits the first £322,000 of the estate, all personal possessions, and half of the remaining estate. The other half is divided equally among the children. |
No children Estate up to £450,000 the spouse or civil partner inherits the entire estate. The spouse or civil partner inherits personal possessions, £250,000 and half of the remaining estate. The child receives the remainder.
More one child The spouse or civil partner inherits personal possessions, £250,000 and one third of the remaining estate. The other two thirds is divided equally among the children. |
No children or grandchildren The spouse or civil partner inherits the entire estate.
With children or grandchildren The spouse or civil partner inherits the deceased’s interest in the house, up to £473,000, furniture and household items up to £29,000, £50,000 of the balance and a third of the rest of the estate. The other two thirds is divided equally among the children (or their descendants). |
Children2 |
If there is no surviving spouse or civil partner, the entire estate is divided equally among the children. | If there is no surviving spouse or civil partner, the entire estate is divided equally among the children. | If there is no surviving spouse or civil partner, the entire estate is divided equally among the children and grandchildren. |
Other Relatives |
If there are no children, the estate is distributed among other relatives in a specific order of priority (as shown in our easy-to-follow flow charts below). | If there are no children, the estate is distributed among other relatives in a specific order of priority (as shown in our easy-to-follow flow charts below). | If there are no children or grandchildren, the estate is distributed among other relatives in a specific order of priority (as shown in our easy-to-follow flow charts below). |
1 Unmarried partners do not inherit under the rules of intestacy.
2 Adopted children are treated as biological children. Step-children do not automatically inherit unless they were legally adopted.
What can be done?
Understanding the rules of intestacy is crucial for ensuring that your clients' estates are managed according to their wishes. This is especially important for couples who have lived together for quite some time. Unless they are married or in a civil partnership, there are no rights under the law of intestacy to assets which were owned by the person who died.
By advising clients to have an up-to-date will, and considering the options available for life cover; joint ownership, beneficiary nomination and placing the cover in trust, can help avoid the pitfalls of intestacy.
You can use our easy-to-follow flowcharts in face-to-face meetings with your clients to show them what would happen to their estate if they died without leaving a will.