So your loved one has passed away, and no one has been able to find a Will. What happens now?
Where there is no valid Will, the rules of intestacy apply. This makes the process of applying to administer the estate and distribute the assets more difficult than when a Will is in place.
Here’s what you need to know about intestacy.
What is intestacy?
The rules of intestacy govern how a person’s estate is distributed if they die without a valid Will.
If a person is said to have died “intestate,” this means that they have relinquished their control over their estate, and the law is the sole determiner for the distribution of their assets.
These rules only recognise spouses, civil partners and certain close family members.
Under these arrangements, the only people to automatically inherit are married or civil partners. If they also have children and the estate is worth more than £322,000, then the first £322,000 will go to their spouse or civil partner and the rest will be divided in half between the surviving spouse and children.
Please note that these are the intestacy rules for England and Wales – the rules for Scotland are different.
Unmarried couples are not entitled to inherit anything automatically, no matter how long they have been together or whether they share a home, assets or children.
This can lead to distressing and financially difficult outcomes, with surviving partners often needing to make legal claims just to access jointly lived-in property or shared finances.
How to administer the estate when there’s no Will
You will first need to value the deceased’s estate, taking into account any debts that need to be paid and any gifts made within seven years of the person’s death. You will also need to calculate the amount of Inheritance Tax (IHT) liable on the estate and ensure that the correct forms and payment are sent to HM Revenue & Customs (HMRC) on time.
The next step is where the process differs from applying for probate in the case of a valid Will.
When there is no Will, you will need to apply for a Grant of Administration instead of a Grant of Probate.
This must be done by the most “entitled” person – i.e., the deceased’s next of kin. This will be the spouse or civil partner of the deceased, followed by any children who are over the age of 18.
Sometimes, there may be disputes over who should apply for Grant of Administration – for example, between surviving children if there is no surviving spouse or civil partner.
Mediation can help to resolve any disagreements and move the process along.
Once a Grant of Administration has been provided, you will need to liquidate the estate.
This is the official term for turning assets such as property and possessions into cash, which can then be distributed to beneficiaries.
In the absence of a Will, the liquidated cash goes automatically to their next of kin – usually a surviving spouse or civil partner, and potentially any children.
If the deceased has left no surviving spouse or children, the estate will pass to the next person most closely related to the deceased.
Managing intestacy with Rotherham Taylor
In an ideal world, everyone would leave behind a valid Will. However, life doesn’t always go to plan, and many people die intestate.
At Rotherham Taylor, we’re here to guide you through the complex process of intestacy.
We can value the estate, calculate and pay IHT to HMRC, and help you apply for a Grant of Administration.
We’ll make sure the estate is correctly distributed according to the regulations, and we’ll only charge for the work we do.
