The Rules of Intestacy at 100 Years Old

The Rules of Intestacy at 100 Years Old

The intestacy rules for England and Wales are contained in the Administration of Estates Act 1925 (the Act) and set out who can inherit from an intestate estate.

As these inheritance laws turn one hundred years old, it is worth reflecting on how society has changed since their inception and how the rules have (or have not) adapted to modern family dynamics.

A Century of Change

Society a century ago differed greatly, reflecting an era vastly different from today’s more modern family dynamics, such as cohabitation and ‘blended families.’ Back then, social norms dictated that only married couples lived together and had children, and getting divorced was rare.

The concept of openly cohabiting couples or ‘blended families’ as we know them today was practically non-existent.

While these historical rules may seem outdated now, understanding their context provides valuable perspective. Ultimately, inheritance laws from that era were designed for a society with a very different structure.

The Rules of Intestacy

In England and Wales, if someone dies without a valid will in place, they are said to have died ‘intestate.’ With no will to follow, their estate must legally be distributed according to the intestacy rules.

These rules are a predetermined priority order of who is entitled to inherit. They also apply in cases of partial intestacy, where a valid will is in place but does not deal with all of the deceased’s estate.

Only married or civil partners (not unmarried long-term partners) and an exclusive selection of close blood relatives can inherit under the rules of intestacy on a descending scale of relevance.

There are only eight entitled classes of beneficiary before the estate passes to the Crown (or the relevant Duchy of Lancaster or Cornwall). The order of entitlement is as follows:

• Married couples and civil partners
• Children
• Parents
• Siblings of whole blood (or their children)
• Siblings of half-blood (or their children)
• Grandparents
• Uncles or aunts of whole blood (or their children)
• Uncles or aunts of half-blood (or their children)

Key points to note:

• If any of the entitled beneficiaries predecease the intestate, their children will inherit in their place
• This also happens to be the order of priority when it comes to who can be appointed as an administrator to deal with the affairs of the deceased’s intestate estate

The Statutory Legacy

The Statutory Legacy is a specified sum that the surviving spouse or civil partner of a person who dies intestate with children (or grandchildren) is entitled to receive.

The surviving spouse or civil partner is entitled to receive the first £322,000 of assets and all of the deceased’s personal possessions, with the remainder of the estate divided up as:

➡️ One half to the surviving spouse or civil partner

➡️ The other half is divided equally between any children (or their offspring)

The fixed sum Statutory Legacy amount was most recently increased on 26th July 2023, the second such increase in the last 6 years.

What Familial Relationships Are Excluded by the Intestacy Rules?

The exceptions for familial relations include those by marriage (in-laws), foster children, stepchildren, and children officially adopted out (though fully adopted children are entitled).

Perhaps most infamously, couples living together who are not married or in a civil partnership – often inaccurately referred to as a “common law spouse” – are not entitled to inherit under the rules of intestacy.

This could turn out to be particularly troublesome in the future, given that the cohabiting couple is the fastest-growing living arrangement in England and Wales.

Naturally enough, being excluded can come as a shock to some and can lead to significant problems, especially considering the emotional strain families already face after losing a loved one.

Summary

To many, intestacy cases do not come along that regularly, and sometimes assistance might be required. At Anglia Research, our experienced case managers take care of these scenarios every day.

If you need guidance through these complexities, feel free to get in touch or explore our dedicated intestacy rules page for more information.