What happens if you die without a will?
Having a will in place is important, because if you die without one your estate will be split up according to the rules of intestacy.
Dying without a will is also called dying “intestate”, meaning “without a testament”. When you die intestate, everything you leave behind (your estate) will be inherited according to the rules of intestacy.
This means that, when you die without a will, there’s no guarantee that your estate will be split up and handed over in the way you’d want it to be.
When you die without a will, someone will have to apply for a letter of administration. This will allow them to become the administrator of your estate, meaning they’ll be in charge of making sure your assets are distributed according to the rules of intestacy.
Who can inherit your estate according to the rules of intestacy?
The rules of intestacy dictate how your estate is split up when you die without a will. This article is about how intestacy works in England and Wales, please see here for the intestacy rules in Scotland.
According to the rules of intestacy, only family members can inherit your assets, which includes married and civil partners, children, grandchildren, parents and siblings. Your estate is split up according to a priority order.
It’s worth bearing in mind that, if you leave behind any debts when you die, your estate will go towards paying those off before any inheritance can be passed on.
1. Civil and married partners
Your partner can only inherit a part of your estate if you were in a civil partnership or marriage when you died. If you’re not in a civil partnership with or married to your current partner, they won’t be able to inherit your estate if you die without a will.
Anything that you jointly owned with your partner (for example, if you own a property as beneficial joint tenants, or if you had a joint bank account) will automatically become fully owned by your partner.
In England and Wales, a married or civil partner can inherit all your personal items and assets, including property, up to a value of £322,000.
If the estate goes over that amount, your partner will get half of the amount that goes over £322,000, with the other half being divided equally between any surviving children you might have.
For example, if your estate adds up to £400,000, your partner would immediately inherit the first £322,000, as well as all your personal items. The remaining £78,000 would then be split up, so your partner would get £39,000 on top of the original £322,000, and the other £39,000 would be divided equally between your children.
2. Children and grandchildren
If you have a surviving spouse, your children will inherit half of the value of your estate that goes over £322,000.
If you don’t have any children, their share of the inheritance will be passed on to your grandchildren.
3. Parents and siblings
If you don’t have any surviving children or grandchildren, your parents will inherit half of the value of your estate that goes over £322,000.
If there are no surviving parents, that inheritance gets passed on to your siblings, or your nieces and nephews in case your siblings are no longer alive.
Other things to keep in mind about dying without a will
What happens to my estate if I have no surviving family members other than my spouse?
When you die without a will and your spouse is your only living family member, they’ll inherit your entire estate according to the rules of intestacy.
What happens to my estate if I live with my partner but we’re not married or in a civil partnership?
When you die without a will, your partner can’t inherit any part of your estate unless you were married or in a civil partnership when you died.
If you have no other surviving family members, your estate would pass on to the Crown.
How you can make sure your wishes are taken into account
If you don’t want your estate to be split up according to the rules of intestacy, there are two main ways you can be certain that everything is distributed according to your wishes.
Writing a will
Leaving behind a will allows you to decide who gets what out of your estate. This can be especially important if you aren’t married to your partner at the time of your death, as they wouldn’t have the right to inherit your estate according to the rules of intestacy. It also allows you to allocate specific assets to different people, including those who aren’t family members.
At Beagle Street, all of our policyholders can write a free simple will through one of our regional partners.
Putting your life insurance policy in trust
When you die during the term of your life insurance policy, the payout from that policy will go to your chosen beneficiary, but putting your policy in trust gives you an extra layer of security.
When you put a life insurance policy in trust, the payout from your policy won’t become a part of your estate. This means it can’t be used to pay off any debts you might leave behind, and it won’t be subject to inheritance tax.
Why choose Beagle Street for your life insurance policy?
At Beagle Street, we offer fixed premiums with all of our policies, which means they don’t go up as you get older or if your health changes (unless you request changes to your policy). Those premiums are usually lower if you’re younger, so taking out a policy earlier can mean lower monthly payments throughout the length of the policy.
All of our policyholders can write a free simple will through one of our regional partners, and you can further protect the payout of your policy by placing it in trust.
Want to find out how much you can get covered for? Use our quick quote tool to find out, with no obligation to go ahead with the quote!
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