Death is not the most joyful inevitability of life to contemplate but consideration of what happens to your estate upon this eventuality requires attention if you hold assets, so you can distribute them as you see fit. If you die without making a valid will (intestate) then such distribution will be legally out of your control, even if you have expressed your wishes to someone in a different form. The rules of intestacy are outlined below and if you would wish your estate to be broken up in any other way (as is likely) it is necessary for you to make a will. The apportionment of your estate will also be subject to any deductions required such as inheritance tax at 40% for estates worth over £325,000.
Intestacy rules if you have a spouse/civil partner
Firstly if you have no living children, parents, siblings or children of siblings then your spouse would receive all your estate (subject to any deductions required such as inheritance tax)
If you have children then the first £250,000 would automatically go to your spouse/civil partner, with half the remainder also going to them as a life interest, the other half being equally distributed between your children.
If you have no children but do have parents or siblings then the first £450,000 would automatically go to your spouse/civil partner, with half the remainder also going to them as a life interest, the other half going to the others in the following priority: (1) Parents, (2) Siblings, (3) Children of siblings.
Intestacy rules if you do not have a spouse/civil partner
If this is the case then your estate would pass to your relatives in the following order of priority. (1) Your children, or if deceased then their offspring; (2) surviving parents (3) Siblings, or if deceased then their offspring; (4) Remoter relatives in the following priority: (4)(a) Half-blood Siblings, (4)(b) Grandparents, (4)(c) Uncles and Aunts, 4(d) Half-blood Uncles and Aunts.
If you have no surviving spouse or other relatives then your estate shall pass to the Crown.
Not happy with the above apportionments?
Then make a will! It is likely, that if you were to apportion your estate you would not do so in the above manner, for example you may wish the beneficiaries and/or proportions to be different, e.g. providing more for relatives in need and less for those not. You may wish to provide for non-family members or organisations. And if you wish to give to charity and your estate is valued above the inheritance tax threshold then you can do so without that charity losing 40% of your generous donation to tax. Creating a will allows you to have the autonomy and flexibility, which cannot be done intestate, to distribute your estate as you see fit. For relatively little expense you can attain peace of mind that your estate and legacy will go to the people and causes which you feel most deserving. Should your opinion of this change amendments to your will are always possible up until death.
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