Intestacy Rules in England and Wales: Why Everyone Needs a Will

Dying without a valid will — dying "intestate" — is one of the most common estate planning failures, and one of the most consequential. In England and Wales, the Administration of Estates Act 1925 and the Intestacy Rules determine exactly who inherits your estate if you do not leave a valid will, and the result is frequently nothing like what the deceased would have wanted.

This article explains who benefits under intestacy, who does not, and why everyone — regardless of the size of their estate — needs a valid, up-to-date will.

The Intestacy Rules: A Summary

The rules work through a strict hierarchy of relatives. The key provisions for the most common family structures are as follows:

Where the deceased leaves a spouse or civil partner and children:

The surviving spouse or civil partner inherits:

• All "personal chattels" (household goods, vehicles, jewellery and other tangible personal property).
• The first £322,000 of the estate.
• Half of any residue above £322,000.

The children share the other half of the residue above £322,000, equally. If children are minors, their share is held on statutory trust until they reach 18.

Where the deceased leaves a spouse or civil partner but no children:

The surviving spouse or civil partner inherits everything.

Where the deceased leaves children but no spouse or civil partner:

The children share the estate equally between them.

Where there are no spouse, civil partner or children:

The estate passes upwards through a hierarchy: parents, then siblings, then half-siblings, then grandparents, then uncles and aunts, then half-uncles and half-aunts. If none of these relatives survive the deceased, the entire estate passes to the Crown as "bona vacantia."

Common Misconceptions That Cost Families Dearly

"My partner will inherit everything."

Only if you are married or in a registered civil partnership. The intestacy rules make absolutely no provision for cohabiting partners, regardless of the length or nature of the relationship. A couple who have lived together for 20 years, raised children together, and co-own a home can find that the non-owning partner receives nothing from the deceased's estate if they were not married and there is no will.

This is the single most important reason for unmarried couples — including those in long-term committed relationships — to have wills in place. "Common-law marriage" has no legal standing in England and Wales.

"My step-children will be treated the same as my biological children."

They will not. Under the intestacy rules, the term "children" means biological children and legally adopted children. Step-children — children whom you have raised as your own, but who are not your biological or adopted children — receive nothing under intestacy unless adopted. If you want step-children to inherit, you must say so in a will.

"My family knows what I would have wanted."

Intestacy rules follow a fixed legal formula. The courts have no discretion to deviate from the rules based on what the deceased "would have wanted," even where the family agrees on a different outcome. The only mechanism to vary the distribution after death is a deed of variation, which requires the agreement of all beneficiaries — and benefits only those who are already entitled under intestacy.

Children and Grandchildren Under Intestacy

All children of the deceased share equally under the rules. The word "illegitimacy" has no legal relevance: children born outside marriage are treated exactly the same as those born within it. A parent's obligation to acknowledge biological children extends into the intestacy rules.

Adopted children are treated in all respects as natural children of the adoptive parent for intestacy purposes. They are entitled to their share of the adoptive parent's estate just as a natural child would be.

What happens if a child predeceases the intestate parent? If a child dies before their parent, the deceased child's share does not simply increase the shares of the surviving children. Under the statutory trusts in Section 47 of the Administration of Estates Act 1925, the deceased child's own children — the grandchildren of the intestate — "step up" to inherit their parent's share (a per stirpes distribution). This is called the substitution principle. So if a grandchild survives, they take the share their parent would have received.

Foreign Property: Which Rules Apply?

For UK-domiciled individuals, the UK intestacy rules govern their "moveable" property (bank accounts, investments, personal property) wherever in the world it is located. However, "immoveable" property — land and buildings — is generally governed by the law of the country where it is situated.

This means that if a UK-domiciled person dies without a will and owns a villa in Greece, a flat in Cyprus and an apartment in Dubai, each of those properties will be dealt with under the local intestacy rules of Greece, Cyprus and the UAE respectively. Those rules may bear little resemblance to each other or to the English rules. Greece gives significant rights to children; UAE law follows Islamic inheritance principles for Muslims, and specific local laws for non-Muslims; Cyprus has its own Civil Code.

The practical implication is that anyone with assets in multiple countries needs wills — potentially multiple wills — in multiple jurisdictions, each carefully drafted to work in conjunction with the others and not accidentally revoke each other.

Protecting an Unmarried Partner Through Your Will

If you are not married to your partner, a will is the only reliable mechanism to ensure they benefit from your estate. A well-drafted will can:

• Leave the family home to the surviving partner (or create a life interest in it so they can continue to live there while passing the underlying capital to your children on their death).
• Provide a legacy of cash, investments or other assets.
• Appoint the partner as executor, giving them legal authority to manage the estate.

There is also a backstop protection under the Inheritance (Provision for Family and Dependants) Act 1975: a person who was being financially maintained by the deceased, or who was living with them as their partner for at least two years immediately before death, can apply to the court for financial provision from the estate. However, this is a court process: it is expensive, uncertain in outcome, and emotionally difficult for all involved. It is not a substitute for a will.

Lasting Powers of Attorney Alongside Your Will

A will governs what happens to your property after your death. During your lifetime, your ability to manage your financial affairs may be affected by illness or incapacity. Without a Lasting Power of Attorney (LPA) in place, even a spouse has no automatic legal authority to access your bank accounts, manage your investments or make financial decisions on your behalf.

For unmarried partners, the position is even more exposed: without an LPA, a partner has no next-of-kin status, no automatic right to be involved in medical decisions, and no access to financial accounts in the event of incapacity. Hospitals and banks will not recognise a long-term partner as having any legal standing unless documented.

An LPA for property and financial affairs, and a separate LPA for health and welfare, are therefore complementary to a will and should be put in place at the same time.

How Often Should You Review Your Will?

Wills become outdated. The major events that should trigger a review are:

• Marriage (in England and Wales, a will is automatically revoked upon marriage unless specifically made in contemplation of that marriage).
• Divorce (gifts to a former spouse fail; the divorce itself does not revoke the will).
• Birth or adoption of children or grandchildren.
• Death of a beneficiary named in the will.
• Death of an executor named in the will.
• Acquisition of foreign property.
• Significant change in the value or composition of your estate.
• Changes in your family relationships (for example, estrangement).

As a general rule, wills should be reviewed every five years at minimum and after every significant life event.

How Global Investments Can Help

Global Investments works with high-net-worth individuals and families across multiple jurisdictions to ensure that estate planning is comprehensive, up to date, and properly coordinated. We can refer you to specialist solicitors for will drafting and estate administration, and advise on the interaction between your estate plan, IHT position, and international asset structure. Contact us to discuss your situation.