What are the Rules of Intestacy, and what do they mean?
These are the rules which stipulate who benefits (and how much) from an estate where a death occurs with no Will. A spouse has an automatic legal entitlement, but a cohabiting partner does not (regardless of the length of the relationship). Likewise, children of the deceased have an automatic legal entitlement if the estate is over a certain amount.
An alarmingly high number of people have misconceptions about the Rules of Intestacy and the importance of a Will. Contrary to popular belief:
- A cohabiting partner is NOT automatically entitled to anything under the Rules of Intestacy.
- A spouse or civil partner is NOT automatically entitled to the whole estate where the estate is more than £322k and there are children of the deceased – they will receive the first £322k of it, with the remainder being split equally between that spouse or civil partner and any children of the deceased.
Below are three common examples that we hear from clients far too regularly:
“We’ve been together for donkey’s years, we don’t need a Will, it will all go to my partner” – no marriage or civil partnership, and one adult child from a previous marriage whom the client had no relationship with, due to the divorce of the client and the child’s other parent.
What actually happens? Under the Rules of Intestacy, the estate passes to the child.
Did the client want this? No. Did they realise what would actually happen? Also no.
Too many people believe that cohabiting couples have the same legal rights as those who are married or in a civil partnership – and this isn’t just in the case of a relationship breakdown, it’s also a very big misconception when it comes to death. If one dies, is the other aware that they have no automatic right to inherit under the Rules of Intestacy? A Will is crucial for cohabiting partners.
“I don’t need a Will, when I die everything will go to my wife which is what I want anyway” – estate circa. £850k, three kids.
What actually happens? Under the Rules of Intestacy, £322k and his personal belongings will go to his wife, with the remainder being split equally between his wife and his three children.
Was this what he wanted? No. Did he realise what would actually happen? Also no.
A spouse doesn’t inherit the whole estate, they only inherit up to an amount plus personal belongings. Too many people believe their spouse will inherit everything and so they “don’t need a Will”.
“My husband knows I wish for £10k of my estate to go to my sister on my death. I don’t need a Will to make sure that happens” – married, no children, estate circa. £220k.
What actually happens? Under the Rules of Intestacy, husband inherits all of Mrs’ estate and doesn’t honour the wife’s wish.
Was this what she wanted? No. Did she think this would happen? Also no.
