Where there’s a will…

Whether your financial means are large or even limited, a Will is one of the things anyone with family must consider having in place. Many people don’t consider drawing up their Will until much later in their lives, and occasionally this can prove to be too late. Getting professional advice regarding your Will is the most sensible approach and is usually quick and inexpensive. Remember that getting married, having children or going through a divorce all merit a review of your Will. As importantly you should have a Will where the parties are not married or your partner may be left with nothing as you will see from the laws governing intestacy.

Without a Will an individual dies “intestate” and the estate assets are distributed to living relatives according to the rules of intestacy. All too often and as a result of the rules of intestacy, the rules confer a benefit on relatives you probably would have had no intention to benefit at all. Perhaps even worse, your estate could end up going to the State, if no living relatives can be found. Doubtless most people in such circumstances may have much preferred to benefit their favorite cause or charity instead. Without an appropriate Will the opportunity to do so is gone forever.

Should you either not have made a Will at all or updated your current Will before your passing, those you had intended for your heirs could be disappointed. This could be disastrous where small children are involved. Equally you may want to provide for the care of elderly or disabled relatives, who currently rely on your support and will continue to need it. Bear in mind also that we live in an age of highly fluid and changing relationships, including partners, spouses, children and step children. Any such change may require revisions to your Will. A Will may have been drawn up appropriate to circumstances at that time but remain unrevised since; this could mean your Estate devolves under that Will upon a former partner to the disadvantage of a current partner. It is also likely that any further children of the family since the time the Will was first drawn up, are inadequately provided for. This is especially important as step children will not benefit by intestacy, and must be provided for specifically in your Will.

What Happens to Your Property If You Have No Will?

All debts outstanding such as loans and mortgages must be paid in full. The balance then left over will be distributed depending on the specific family circumstances in accordance with the intestacy rules. There is a set order in which your estate will pass to relatives under the intestacy rules.

If you draw a Will you will decide who benefits from your estate.
If you die without a Will, legislation developed long ago will dictate who benefits from your estate. Charities, friends, godchildren and stepchildren will receive nothing.

Spouse and children

Your spouse receives the personal chattels, the first £250 000 and a life interest in half of the remainder. The other half vests in your children in equal shares. The vesting is immediate in the case of children over 18, but in trust for minors until their majority. You will see that this rule immediately poses a problem, as most people obviously prefer young adults (in their own best interests) not to have unfettered access to significant sums of money. Only a suitable Will can direct how and when young adults can access their inheritance. In addition only a Will gives you the opportunity to direct who precisely will manage, invest and control your children’s money until they reach an age you consider adequate to manage their own financial affairs. Alternatively you could choose to benefit them for a period only or for life, followed by your grandchildren perhaps. Children who inherit some of your money by intestacy and are over 18 can spend it as they wish, with no one able to question their actions, even if this leaves your spouse in financial difficulties.

Spouse but no other relatives

Your entire estate passes on intestacy to your spouse.

Spouse and relatives but no children

Your spouse receives all personal chattels and the first £450 000, and half of any remainder. The deceased’s parents and failing them, any brothers and sisters share the other half. You may want to consider this aspect carefully, while remembering you have the same problems mentioned above regarding unfettered financial access by young adults and no choice of financial and other advisors.

Children but no spouse

Living children inherit equally. In the case of a predeceased child who has left their own children, those children inherit their deceased parent’s share. You should also bear in mind that by drawing up a Will you have the opportunity to appoint guardians for your minor children. After all, no-one is better placed than you are to select an appropriate person(s) to whom you will entrust your minor children. Understandably this aspect of will making is one which requires a great deal of thought by the parents of minor children.

If you have a Will you can appoint guardians for your children, selecting who is responsible for their upbringing, and protecting the assets until the children are at an age you have selected at which they will benefit.
If you have no Will but have minor children who inherit from you, a court will appoint a guardian for their estates until they reach the age of eighteen.
If you have no Will but leave minor children and your spouse did not survive you, a court will appoint a guardian for their persons.

No spouse and no children

The estate devolves on relatives remaining in the following order:

The deceased’s parents inherit first;
The deceased’s brothers and sisters who have the same parents are next;
The deceased’s (“whole”) aunts and uncles who have the same mother and father as the deceased’s mother or father next;
The deceased’s (“half”) aunts and uncles who have either the same mother or father as the deceased’s mother or father next;
The Crown.

You will see that if you have no surviving relatives, the whole of your estate will pass straight to the Crown, i.e. the State and Government. This is in itself a particularly good reason for anyone to make a Will whether they have family or not.