What are the top 5 Common Misconceptions about Intestacy?

There are many misconceptions about what happens if someone passes away intestate, i.e., without a valid Will. This can cause difficulties for a family following a death and may potentially result in loved ones being deprived of their inheritance. In this article, we will address common misconceptions and provide clarity on the realities of dying without a Will.

Having a valid Will reduces the likelihood of disputes and confusion arising after a death. It offers families the comfort of understanding the deceased's intentions and preferences regarding the distribution of their estate.

Misconception 1: I don’t need a Will because my husband/wife will automatically inherit everything.

Some people choose not to make a Will under the misconception that it's unnecessary. One prevalent misunderstanding is the belief that a spouse automatically inherits everything in the absence of a Will. However, this isn't the case if there are children involved.

In reality, the spouse or civil partner inherits the first £322,000 of the estate plus all personal possessions. The remaining estate is divided equally between the spouse and the children.

This distribution may not align with your preferences or provide the most favourable financial outcome, underscoring the importance of carefully considering your wishes and drafting a Will accordingly.

Misconception 2: My family is aware of the arrangements for the care of my children in the event of my passing.

If you have not left a Will appointing a guardian for your children and there is no one else with parental responsibility, then it will be for the court to decide who will raise them. This may not align with your preferred choice.

Misconception 3: My spouse or partner will inherit my home.

The inheritance of your home by your spouse or partner is not automatic and depends on its ownership structure. If the property is solely in your name, it becomes part of your estate and is distributed according to the Rules of Intestacy in the absence of a valid Will. Unmarried partners are not beneficiaries under these rules.

If you jointly own the property with your spouse or partner, the outcome depends on the type of joint ownership.

As joint tenants, your partner automatically inherits the entire property upon your death. However, if you are tenants in common, your share of the property is subject to the Rules of Intestacy in the absence of a Will. This means that if you are not married, someone entitled to inherit your estate could try to force a sale of the property, leaving your cohabiting partner in a difficult situation.

Misconception 4: All of my assets will be passed on to my common-law spouse.

Even if you have lived with someone for many years, they will not automatically inherit anything if you do not have a Will. They could consider making a claim under the Inheritance (Provision for Family and Dependants) Act 1975. This can be an expensive process and could potentially cost your estate a substantial sum of money.

Misconception 5: My stepchildren will each receive an equal share of my estate.

Stepchildren are not included in the Rules of Intestacy, meaning they would not inherit anything if you do not leave a Will. However, if they were treated as part of the family or you provided for them, they could potentially make a claim under the Inheritance Act.

For further advice, please contact your usual Moore adviser.