Intestacy will occur when a person has not left a valid will, or if their will does not dispose of all of their estate (for example if all of the residuary beneficiaries had predeceased).
The exact distribution under the intestacy rules is set out in S46 Administration of the Estates Act 1925. The distribution will vary depending on the value of the estate and what members of family survive. Beneficiaries will inherit the estate after any debts, funeral expenses, taxes and other liabilities have been paid.
Spouse is alive- Intestate leaves no children
If the intestate’s spouse survives by 28 days, and there are no surviving issue of the intestate, the surviving spouse will receive the entire estate.
Spouse is alive – Intestate leaves children
If the intestate’s spouse survives by 28 days, and there are surviving issue of the intestate, the distribution would be as follows:
The spouse inherits all personal chattels.
The spouse receives a statutory legacy of £270,000 plus gross interest.
The spouse receives half of the remainder
Children receive the other half equally between them. If any child has predeceased, that child’s issue receives their share per stirpes.
If the estate is worth less than £270,000, the spouse receives everything.
The spouse can ask the personal representatives (PRs) to appropriate the matrimonial home to them in satisfaction of their entitlement.
No spouse survives
Where no spouse survives, or doesn’t survive by 28 days, the estate is distributed to the following family members, passing to the next class of beneficiaries if there are no surviving beneficiaries in the previous class
To the intestate’s children equally. If any child has predeceased, that child’s issue receives their share per stirpes.
To the intestate’s parents equally.
To the intestate’s whole blood siblings equally. If any sibling has predeceased, the sibling’s issue receives their share per stirpes.
To the intestate’s half-blood siblings equally. If any sibling has predeceased, that sibling’s issue receives their share per stirpes.
To the intestate’s grandparents equally.
To the intestate’s whole blood uncles and aunts equally. If any uncle or aunt has predeceased, that person’s issue receives their share per stirpes.
To the intestate’s half-blood uncles and aunts equally. If any uncle or aunt has predeceased, that person’s issue receives their share per stirpes.
No close relatives
Where there are no surviving relatives of the intestate alive, their estate will pass bona vacantia to the Crown.
Cohabitants have no rights under the Intestacy Provisions. Should they believe that they have not been provided reasonable provision from the estate, they would need to apply to the courts under the Inheritance (Provision for Family and Dependants) Act 1975.
If you would like to ensure that your family are protected, why not book a free no obligation consultation in the comfort of your own home to find out more about wills and trusts.
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