A will is the way you choose who inherits your assets. If you die without a will, then the inheritance will instead be governed by the sometimes complicated rules of intestacy.
What Are the Rules Of Intestacy?
The rules of intestacy decide who inherits an estate, including money and property, if a deceased person does not leave a valid will. This is separate to rules around lasting power of attorney. An LPA governs who can manage your affairs if you are alive but do not have mental capacity. You can learn more about an LPA online at powerofattorneyonline.co.uk.
Who Can Inherit?
Spouses and civil partners are first in line to inherit, even if separated. Divorcees are not eligible. Spouses automatically inherit money from joint bank accounts and property shares if they were beneficial joint tenants, though not necessarily if they were tenants in common.
Any portion of an estate worth more than £322,000 is split between spouse and children, though the spouse inherits the first £322,000 and any personal property. If there is no spouse, the estate is divided evenly between biological or adopted children, regardless of other parentage, but not stepchildren. Grandchildren only inherit if their parent or grandparent predeceases the intestate person or is younger than 18 when they die themselves. If there are no eligible relatives, the estate is passed to the Crown, though it can choose to make grants to family members.
Dying without a valid will may complicate things for your loved ones if they are not eligible to inherit under the rules of intestacy.