insideINFO - April 09
Intestacy Rules
If you die without a Will, you are deemed to die Intestate. The Intestacy Rules dictate how your estate is to be distributed.
From the 1st February 2009:-
Single Person** with No Children
Your estate will pass to your parents, failing them to your brothers and sisters, failing them to their children, failing them to your grandparents, failing them to your uncles and aunts and failing them to their children.
If you do not have any of the above relatives then the estate will pass to the Crown.
Single Person** with Children
Your estate will be divided equally between your children* once they attain the age of eighteen years.
Married Person with No Children
Your spouse/civil partner will inherit the first £400,000 from your estate and all of your personal possessions. The remainder of your estate will be divided into two shares. One share will pass to your spouse/civil partner and the remaining share will pass to your parents, failing them to your brothers and sisters and failing them to their children. If your estate is worth less than £400,000, the whole estate passes to your spouse.
Married Person with No Parents, Brothers and Sister (whole blood) and Nephews and Nieces
The spouse/civil partner will inherit the entire estate.
Married Person with Children
The spouse/civil partner will inherit the first £250,000 from your estate and all of the personal possessions. The remainder of your estate will be divided into two shares. One share will pass to your children* once they attain the age of eighteen years and the remaining share will be held on trust for your spouse's/civil partner's lifetime. Your spouse/civil partner will be entitled to the income from this Trust. On your spouse's/civil partner's death, this share of your estate will then pass to your children*
Reasons to make a Will
§ If you do not make a Will your estate will pass to persons that you may not have ordinarily chosen to benefit from your estate. With a Will you can control who inherits from your estate.
§ As you can see, your spouse/civil partner will not automatically inherit everything within your estate. If your home is in your sole name, there is the possibility that the house would have to be sold in order to pay the relevant beneficiaries.
§ If you are not married or in a civil registered partnership but you do have a partner, under these rules they will not inherit at all.
§ With a Will you can dictate what age your children are to inherit from and you can appoint a guardian in the event of your children being minors at the time of your death.
§ Some people consider making homemade Wills in an effort to save money. There is a greater risk of mistakes being made which could invalidate the Will or lead to it being challenged after your death. This mistake could prove costly to your estate.
In conclusion, we would advise you to make a Will.
Kerseys' professional Private Client Team will be happy to assist in the preparation of your Will.
Notes:
* Children can inherit earlier upon remarriage. If your child predeceases, leaving children of their own they will inherit their parent's share of the estate.
** Single person includes widows/widowers and co-habitees.