When someone passes away without a valid will, their estate is distributed according to the rules of intestacy. In England and Wales, these rules can lead to unexpected outcomes and are often misunderstood. This blog post aims to clarify some of the common misconceptions about intestate estates.
Misconception 1: The Spouse or Civil Partner always inherits everything
One of the most prevalent misconceptions is that the surviving spouse or civil partner will inherit the entire estate. However, this is not always the case. If the deceased has children, the spouse or civil partner will inherit the first £322,000 of the estate (since 26th July 2023), all personal possessions, and half of the remaining estate. The other half is divided equally among the children. If there are no children, the spouse or civil partner inherits the entire estate.
Misconception 2: Common-Law Partners have the same rights as Spouses and Civil Partners
Another widespread misunderstanding is that common-law partners, or those in long-term cohabiting relationships, have the same rights as married spouses or civil partners. In reality, common-law partners have no automatic right to inherit under intestacy rules. This can lead to significant hardship for surviving partners who may find themselves without any financial support from the deceased’s estate.
Misconception 3: Children from previous relationships are automatically Included
In blended families, it is often assumed that children from previous relationships will inherit from an intestate estate. Intestacy rules only recognise biological and legally adopted children. Stepchildren or children from previous relationships are not automatically entitled to inherit unless they have been legally adopted by the deceased.
Misconception 4: The estate goes to the Government if there are no immediate family members
People often believe that if there are no immediate family members, the estate will automatically go to the government or the Royal Family.
While this can eventually happen or at least to the Crown, it is a last resort. The rules of intestacy have a strict order of relatives who are eligible to inherit, including parents, siblings, nieces, and nephews. The list goes on to identify aunts, uncles, cousins and even more distant relatives if there is no close family. The estate only passes to the Crown if there are no surviving relatives from this extensive list.
Misconception 5: Wills are only necessary for the wealthy
There’s a common belief that wills are only necessary for those with substantial assets. However, regardless of the estate’s size, having a will is crucial for ensuring that your wishes are carried out. Without a will, even modest estates can be subject to the rigid rules of intestacy, which may not reflect the deceased’s preferences. This leads on nicely to the next Misconception.
Misconception 6: Intestacy Rules automatically reflect the deceased’s wishes
Some people think that intestacy rules naturally align with what most people would want. However, these rules are a one-size-fits-all approach and do not account for individual circumstances or relationships. For example, a person may be estranged from their children and instead wanted to leave a significant portion of their estate to a close friend or a charity. The intestacy rules do not accommodate this.
Misconception 7: Intestate estates are simple and quick to administer
Many assume that estates without a will are straightforward and quick to administer. In truth, intestate estates can be complex and time-consuming. The lack of clear instructions can lead to disputes among potential beneficiaries, delays in the distribution of assets, and additional legal costs. The process involves identifying all eligible relatives, valuing the estate, and ensuring compliance with the legal requirements.
Our Inheritance Tracing team are specialists in dealing with the administration of intestate estates and guiding you though the sometimes complex process. We can also instruct third party partners to assist with tracing other beneficiaries, dealing with properties and obtaining applicable insurance to cover the distribution of the estate. Please contact our team using the enquiry form below or alternatively by emailing inheritance@tayloremmet.co.uk or calling 0114 218 4000.