"I'm not afraid of death; but dying scares the hell out of me" Jack Cleary
Quite simply; dying without a Will can be a disaster for your loved ones...
Passing away without having a valid Will is known as dying Intestate. The rules that govern the distribution of your assets in such circumstances are known as the Laws of Intestacy.
Under the Law of Intestacy, your spouse and children do not automatically receive everything in your estate. The Law sets out clear rules on the distribution of your assets including your home, personal possesions, life assurance, investments and cash - in fact everything you own.
Factors such as whether you are married, have children or have any living relatives, will be taken into account. For example; if you are married with children and die without a Will, your spouse would receive the following:
- All personal chattels (i.e. personal items such as jewellery, clothes and furniture)
- A legacy of £250,000
- A life interest in half of any remaining assets (a nominal amount of interest is paid. Your spouse has no access or rights to any remaining capital)
Everything else will be distributed equally between your children if they are over 18 or held in trust until they attain the age of 18. Although at first glance it seems that children fare well under the Intestacy rules, the fact that they are entitled to receive their share of any Inheritance at the age of 18 poses all sorts of dangers. The age of 18 is very young to inherit what could often be a very large sum of money. In contrast, most people who arrange a Will seek to increase the age that their children may inherit to between 21 and 25.
Although at some stage it is likely that most people would wish their children to benefit from their estate, there is little to be gained by allowing money to be held on trust until your children are 18, that may be needed by your spouse to support the family financially.
If you are living together but not married you face even greater problems, you will not be entitled to any of your partners assets if you do not have a Will...even if you have children together. If you would like your partner to have sufficient funds to support your family you MUST make a Will.