Understanding Intestacy
When someone dies without a valid Will, their estate is subject to the rules of ‘intestacy’. Intestacy determines how the assets will be distributed and the process can vary depending on the familial relationships of the deceased.
It is essential to be aware the intestacy laws may not align with the deceased wishes, as their estate will be divided according to a predetermined statutory order.
Order of Inheritance
Under the rules of intestacy, the descendant’s estate will be distributed according to a specific order of priority; the spouse or civil partner typically has the first entitlement (but only up to £270,000), followed by children, grandchildren, parents, siblings, Aunties/Uncles and other relatives.
If no relatives can be found, then the estate may pass to the Crown.
Understanding the order of inheritance is crucial to comprehend who may be entitled to a share of a deceased person’s estate.
Appointing an administrator
In the absence of a Will, an administrator needs to be appointed to handle the deceased person's affairs. This administrator can be a family member or close relative, however, if no suitable candidate is available then the court may appoint a professional to carry out this role instead.
The administrators’ responsibilities will include valuing the estate, paying debts, paying taxes, and distributing assets, in accordance with intestacy laws.
Letters of Administration
To proceed with the administration of an estate, the appointed administrator must apply for ‘Letters of Administration’ from the probate registry. These documents serve as legal proof of the administrators of authority to deal with the deceased person's assets.
The application process involves submitting various documents, including the death certificate, administrator identification, and all necessary legal forms. The probate registry will then review the application and issue the letters of administration once everything is in order. This currently takes around 5 – 6 months.
Valuing the estate
Before the estate can be distributed, its value must be assessed and confirmed. The administrator is responsible for obtaining professional valuations of all assets including property, bank accounts, investments, and personal belongings.
Additionally, any outstanding debt, loans and liabilities must be identified and settled from the estate's funds.
Distributing the estate
Once the estate has been valued and all debts have been settled, the assets can then be distributed amongst the beneficiaries according to the rules of intestacy.
Again, it is important to note that the distributions are predetermined by law and may not align with the deceased wishes. Therefore having a valid Will or probate in place is essential to ensure that your estate is distributed according to your specific wishes.
Special circumstances
In some cases, specific circumstances may complicate the distribution process even further when there is no will and no probate.
As an example, if the deceased co-owned property or held joint bank accounts, the ownership may automatically transfer to the surviving co-owner - bypassing the estate entirely.
Similarly if the deceased had dependents, then the court may have to make provisions for their financial maintenance. It is always important to consult with a legal professional when dealing with these unique situations.
To ensure your assets are distributed as per your wishes and to reduce the burden on your loved ones it is crucial to create a valid Will.
A Will allows you to specify your beneficiaries, appoint executors to handle your finances and property, name guardians for minor children and potentially minimise inheritance tax on your estate.
Seeking professional guidance when drafting a Will ensures that your wishes are legally binding and helps alleviate any confusion or complications for your loved ones during an already challenging time.
Contact the Will & Probate specialists at Florins for a FREE initial meeting.
Call 01507 304222 or email: [email protected]
We would be happy to hear from you so get in touch via phone or email to one of our advisers directly and we will respond within 48 hours.
Florins Pensions & Investments Ltd is authorised and regulated by the Financial Conduct Authority.
Florins Pensions & Investments Ltd is entered on the Financial Services Register https://register.fca.org.uk/ under reference 512554
Licensed by the Institute of Chartered Accountants in England and Wales to carry out the reserved legal activity of non-contentious probate in England and Wales
If you wish to register a complaint, please write to or telephone 01507 304222. A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at financial-ombudsman.org.uk or by contacting them on 0800 023 4 567. If you cannot settle your Probate complaint with us, you may be entitled to refer it to the Legal Ombudsman at legalombudsman.org.uk or by calling 0300 555 0333.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.
