Imagine living your entire life, working hard, and building up assets to provide for your loved ones, only for all of that effort to be undermined simply because you didn’t draft a will. It’s a scenario that unfortunately plays out far too often.
According to a 2020 survey by Will Aid, around 54% of UK adults do not have a will. The survey also found that only 23% of those aged 35-54 have made a will, indicating a significant portion of the population is unprotected by legal documentation of their wishes.
This article aims to shed light on what happens if you die without a will in the UK and why it’s crucial to seek professional help from a solicitor to ensure your wishes are honoured.
The Consequences of Dying Without a Will
When someone dies without leaving a will, they are said to have died “intestate.” In such cases, the distribution of their estate is handled according to the rules of intestacy. These rules are a fixed set of guidelines laid out by law, which might not align with your personal wishes.
Intestacy Rules Explained
Under the intestacy rules in England and Wales:
Spouse or Civil Partner: If you are married or in a civil partnership, your spouse or partner will inherit the first £270,000 of your estate and all personal possessions. Anything remaining is split: 50% goes to your spouse, and the other 50% is divided equally among your children.
Children: If you have children but no surviving spouse, your children will inherit your entire estate, divided equally.
Parents and Siblings: If you leave behind no spouse, civil partner, or children, your estate will go to your parents. If they are no longer alive, it will go to your siblings.
More Distant Relatives: If no immediate family members are available, your estate could pass to more distant relatives.
No Living Relatives: In the absence of any living relatives, your estate will pass to the Crown (the government).
The Impact of Intestacy
Dying without a will can cause significant distress and financial hardship for your loved ones. Here are a few potential issues:
Disputes Among Family Members: Intestacy can lead to disagreements and conflicts among surviving family members, often resulting in lengthy and costly legal battles.
Unintended Beneficiaries: The law might allocate your assets to people you wouldn’t have chosen, such as estranged relatives or distant family members you never knew.
Exclusion of Unmarried Partners: If you are in a long-term relationship but not married or in a civil partnership, your partner will not automatically inherit anything under intestacy rules.
Children’s Inheritance: If your children are minors, their inheritance will be held in a trust until they reach 18, which could impact their financial support during their formative years.
Estate Size and Taxes: Poor estate planning might also lead to unnecessary taxes, reducing the value of what you leave behind.
How to Avoid Intestacy Problems
To ensure your estate is managed according to your wishes, consider these five key points:
Create a Will: The most straightforward way to avoid intestacy is to make a will. Clearly outline how you want your assets distributed and who should be responsible for carrying out your wishes.
Choose an Executor: Appoint a reliable executor to manage your estate. This person will be responsible for ensuring your instructions are followed.
Update Your Will Regularly: Life changes such as marriage, divorce, the birth of children, or the acquisition of significant assets should prompt a review and update of your will.
Seek Professional Advice: Engaging a solicitor ensures your will is legally sound and considers all aspects of your estate and personal circumstances. They can also help minimise inheritance tax liabilities.
Communicate Your Wishes: Make sure your family knows you have a will and understands your wishes. This can prevent misunderstandings and conflicts later on.
Take Action Today!
Dying without a will can leave your loved ones in a precarious position, both emotionally and financially. Avoiding this is simple – make a will. If you need help drafting your will or require general advice on estate planning, don’t hesitate to get in touch with us at Johnson and Boon Solicitors. Our experienced team is here to guide you through the process, ensuring your peace of mind.
Contact us today at 0151 637 2034 or email info@johnsonandboon.co.uk to schedule a consultation. Let’s make sure your legacy is protected and your loved ones are cared for, exactly as you intend.