Intestacy And Why Having A Will Is So Important
What does Intestacy mean?
Intestacy can cause families an array of problems. If a person dies without leaving a valid Will, they are said to have died intestate. If that happens, once all debts have been paid (including Inheritance Tax if the estate is above the tax threshold), the remaining value of the estate is shared out amongst the next of kin. More problems arise if the deceased has no direct relatives. Only married or civil partners and some other family members can inherit under the Government’s rules of Intestacy.
It is never too early to make a Will but it can be too late
Invalid Wills cause intestacy too
If a person dies and the Will is deemed to be invalid, the rules of intestacy apply and the estate will be divided according to these laws and not according to the wishes expressed in the Will.
Married and Civil partners
Spouses or Civil partners will only inherit the estate when a person dies intestate if they are married or in a civil partnership at the time of death. Divorced couples or those who have had their civil partnership dissolved will not be able to inherit the estate. But if you are separated yet still married or in a civil partnership, you can still inherit your partner’s estate under the rules of Intestacy.
If there are surviving children, grandchildren or great-grandchildren and an estate is valued at over £250,000, the civil partner or spouse will inherit:
- All the personal property and belongings of the deceased
- The first £250,000 of the estate
- A life interest in half of the remaining estate. This means that you do not have the right to sell that part of the estate, but you do have the benefit of it during your lifetime.
Anything left over after this has been taken into account will be divided equally between the children, grandchildren or great-grandchildren of the deceased.
Children
Children of the deceased will inherit the estate if there is no surviving spouse or civil partner. If there are two or more children, the estate will be divided equally among them. If there is a surviving civil partner or spouse, the children will inherit the estate after the initial £250,000 amount has been subtracted. In the case of children under the age of 18, the inheritance will be managed by a trustee until the child comes of age.
Joint property and bank accounts
In the case of joint home ownership or bank accounts as joint tenants, the surviving partner or spouse will continue to own the property as it is not regarded as an ‘inheritance’ as such. In nearly all property bought by married couples, the ownership is as ‘joint tenants’. Property and money that a surviving partner inherits is not counted as part of the estate when it is being valued for intestate purposes.
No surviving relatives means the State benefits
If the deceased has no surviving relatives, the entire estate reverts to the Crown, known as ‘bona vacantia’. The Treasury solicitor is then responsible for dealing with the estate, and may make grants from the estate to those who think that they have a genuine case to inherit some or all of the estate value.
By not leaving a valid Will, a person who dies intestate can leave behind a tangled web for both solicitors and family members to unpick. That is why it is so important to ensure that you have an up to date and valid Will.
It will also allow people who are not eligible to inherit from an intestate estate such as carers or friends can be remembered. Intestacy can be exceptionally complex, often taking years to finalise and ensure that everyone who has a valid claim on the estate is catered for. To avoid this situation, talk to a lawyer about drawing up a valid and suitable Will now.being an intestate expat is likely to bring about even more problems
