WHAT HAPPENS IF YOU DIE WITHOUT LEAVING A WILL?
PROCRASTINATE……………….. we all do it. There are so many things to be done so we put them off to some future date “when we have time”. Unfortunately by then it may be too late and we will have left chaos, additional grief, months of legal wrangling and the possibility of our spouse/partner being left in very reduced circumstances and possibly homeless.
About 70% of adults in the UK have not made a Will. Some think that they are too young; others find it morbid and difficult to face up to their own mortality. Many also assume that everything would pass to our loved ones anyway. This is not always the case, particularly for couples who are not married.
Unfortunately, most people do not realise that dying INTESTATE (without a Will) means that their estate is distributed according to the Law on Intestacy as set down in the Administration of Estates Act 1925. This law takes no account of how many people live their lives today. Unmarried partners can be left out in the cold with no recourse except very expensive court action with no guarantee of success. If there are children, even married couples or couples who have registered a civil partnership can find themselves in situations they would never have dreamt of finding themselves in.
So how is your estate distributed if you die without a Will?
If you are married or have registered a civil partnership and have children your spouse/partner gets everything up to £250,000 together with your personal possessions. The remainder is split in half with 50% going to your children when they reach the age of 18 and the balance going into a trust for the rest of your spouse/partner’s life. He/she can use the interest but not the capitol. When the spouse/partner dies this half reverts to the children
If you are married or have registered a civil partnership and have no children but there are other relatives, then your spouse/partner receives everything up to £450,000 plus half the balance and again takes your personal possessions. The balance of the estate goes to other relatives in this order of priority – parents; brothers/sisters; half brothers/sisters; grandparents; aunts/uncles; spouses of aunts uncles.
If you are unmarried but have children, a shared home may have to be sold if it is not in joint names. The proceeds, along with the rest of the estate will go to your children
If you are not married and have no children then your estate will be shared equally amongst your relatives in the same order of priority as in b) above. If any of these have predeceased but have living children then the children will take the parent’s share.
If you are not married and have no other relatives then your estate will go to the crown. So, apart from the fact that not having a Will means that your estate is divided up in a way you probably would not have wished, if your total worth is more than £325,000 then there will be a 40% tax on everything above that amount. As the law does not recognise an unmarried partner the courts will decide who will sort out your affairs and if you are still technically married then this right could go to them.
As you can see, dying without a Will can cause a great deal of additional grief and anguish to your loved ones. Making a Will is not difficult; it is very simple and straightforward. Only by making a Will can you be sure that those whom you wish to benefit will benefit in the way you want.
“It’s never too early to make a Will but often too late” – Jaci
