What happens if you die without making a Will?

If you don’t make a Will, you are deemed to have died ’Intestate’. This means that the law - rather than you - dictates who inherits your estate and you can’t be confident that items with special value or meaning will be distributed as you would want them. Can you imagine what effect this would have on your loved ones in a time of mourning when they are least able to cope with additional stresses and strains?

Myths

Many married people (one in two) still mistakenly believe that on their death, all their assets will automatically pass to their spouse. In fact, depending on the size of the estate, if there are children, a spouse may only inherit personal items and the first £250,000 outright. The remainder of the estate may not pass to their spouse, children or other relatives as you might expect.

If there are no children, the spouse could receive the first £450,000 outright and other surviving close relatives may benefit from the remainder of the estate. This applies to England, Wales and Northern Ireland - different provisions apply in Scotland. Contrary to popular belief, an unmarried partner has no automatic right of inheritance at all. So as more and more people choose to live together, the making of a valid Will becomes increasingly important. In a civil partnership, the partnership must have been ’registered’ for more than two years prior to death for the bereaved partner to benefit under intestacy rules.

There’s also the important task of appointing guardians for children. A Will can set out your wishes in this respect precisely - otherwise the Courts will make the decision.

A major disadvantage of not leaving a Will is that if family or friends need to contest provisions made by the Crown, it may cost them a considerable amount of money in solicitors’ fees to obtain the possessions you would have wanted them to inherit.

Will Types

So, you know that you need a Will but what kind should you get? These are the most common types of Wills:

Single Will

Suitable for single people, this Will, although having no Inheritance Tax benefits, allows you to ensure that the right people get the right things at the right time.

Mirror Will

This is ideal for couples/civil partners who wish to leave all their assets to each other and if their joint estate is significantly below the £650,000 (2009/10 Tax Year) Nil Rate Band, it has no effect from an Inheritance Tax perspective but allows timely and efficient administration of the estate for specified beneficiaries.

 

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