Intestacy Rules Turn 100 This Year: What Happens if You Die Without a Will

The rules for what happens when you die intestate (without a will) turned 100 this year, but what a typical family looked like in 1925 is very different from today.

What are the rules of intestacy?

The rules of intestacy were set out in the Administration of Estates Act of 1925, and dictate what happens to an individual’s estate if they die without a valid will. Essentially, it sets out the hierarchy of relatives when it comes to inheritance, but it’s not as straightforward as it sounds.

When an individual dies intestate, the first question is whether or not they’re married. If they answer is yes, then their spouse or civil partner will inherit all personal belongings, the first £322,000 of the estate, and half of the remainder of the estate.

For an individual with an estate valued at £500,000, this would mean the spouse gets £411,000 (£322,000 + £89,000), and the children (or grandchildren) of the deceased would receive an equal share of the remaining £89,000. If the deceased is married with no children, the spouse or civil partner will receive everything.

If however, the deceased is not married, the priority order of who inherits the estate is dictated by how closely related they were to the deceased, as shown below.

Order of inheritance:

• Spouse or civil partner
• Children
• Parents
• Siblings of the whole blood (or their children)
• Siblings of half-blood (or their children)
• Grandparents
• Uncles or aunts of whole blood (or their children)
• Uncles or aunts of half-blood (or their children)
• The Crown

Have intestacy rules ever been updated?

Whilst the rules around inheritance, gifting and Inheritance Tax are constantly being reviewed and changed (most notably with Labour’s decision to include unused private pensions in Inheritance Tax calculations from 2027) the rules of intestacy themselves are rarely altered.

The most recent update to intestacy laws was in 2023, when the Statutory Legacy amount (the amount that a spouse or civil partner will inherit before the rest of the estate is divided up) increased from £270,000 to £322,000. There were updates that predate 2023 which also addressed the Statutory Legacy amount, as well as an update to include adopted children under the definition of children, for the purposes of inheritance. However, there are many circumstances that are still not accounted for within intestacy, and no clear indication of whether they will be addressed soon.

The “Nuclear Family” problem: who isn’t protected by current intestacy laws?

There is a myth that your significant other will be looked after when you die because of something called a “common law marriage”; where you have been living together for so long that you are considered married. That does not exist in England and Wales and it does not exist in intestacy rules either. Unfortunately, this means that any cohabitating couples are not in line to receive any of their partner’s inheritance when they die, whether they’ve lived together for six months or thirty years.

Likewise, any non-biological children or children that you haven’t legally adopted are not covered under intestacy. This means that if you and your partner (whether you’re married, in a civil partnership with them, or not) have children from previous relationships, they are at serious risk of being cut off if you die without a will.

100 years ago, divorce was frowned upon, and the laws reflected what the government considered to be a typical family; what we now call a “nuclear family”. The laws were restrictive when they were made, but even more so now, when couples are increasingly living together for years before marriage, and many couples with children choose to not get married at all. This means that families who do not reflect what lawmakers 100 years ago imagined of a typical family are at risk of being excluded from their inheritance or cut off completely.

How to protect your family after you’re gone

Whether you are married or cohabitating, have children or don’t, it’s in your best interest to create a will that reflects your wishes as well as the financial needs of any dependants you have.

A will is no guarantee; it’s not legally binding and can be challenged in court. However, a professionally written, up-to-date will that accommodates the needs of all your dependants is far harder to successfully challenge than one you may have made online but never updated. In order for you to have the greatest chance to protect your family, provide for your partner, children and any loved ones who would otherwise fall outside of inheritance, you need a professional will.

Our dedicated wills and estate team are happy to speak with you for a no-obligation consultation to help you understand what your needs are. We offer a range of will-writing services, beginning at just £180 inclusive of vat.

Don’t wait until it’s too late. Arrange your will today.

Contact MBH Solicitors in Wigan now:

📩 mbh@wigansolicitors.com
📞 01942 206060