Estate planning: What Happens if you Die Without a Will?

It’s common to believe that writing a will is only necessary for the wealthy or that everything will naturally pass to your spouse or children. Unfortunately, these assumptions are incorrect and can create unnecessary financial and emotional hardship for loved ones left behind.

So, what really happens if you die without a will?

You die intestate

 Dying without a will means you die intestate. In this situation, it is no longer you who decides:

• How your assets should be distributed
• Who should manage your estate
• Who should become legal guardians for your children

These decisions will not fall to your family but will instead be determined by the courts. The outcome may not reflect your personal wishes or your family’s best interests.

The law decides who inherits your assets

One of the biggest misconceptions around estate distribution is that all assets automatically go to the surviving spouse. In reality, intestacy laws vary across jurisdictions, but they rarely tally with an individual’s wishes!

In the UK, for example, distribution laws state the first £322,000 of assets passes to the surviving spouse. Anything above that is split equally between spouse and children although, in our experience, few clients actually want this.

When it comes to asset distribution after your death, it’s best to assume nothing. The only way to make sure your assets are passed on according to your wishes is to record them in a legally valid will.

Probate delays

The probate process is broadly similar whether or not you leave a will. However, dying intestate often leads to significant delays, leaving beneficiaries waiting far longer before they can access their inheritance. At an already difficult time, this additional uncertainty can cause unnecessary stress. Having a will in place helps avoid such delays and is, in many ways, a final act of care for your loved ones.

Unnecessary inheritance tax (IHT) may be payable

 A well-prepared will, as part of a broader estate planning strategy, can ensure full use of available inheritance tax allowances. Seeking professional advice can make a real difference, helping to prevent unnecessary tax liabilities. In more complex estates, an adviser can recommend tailored strategies to reduce, and in some cases eliminate, the IHT burden altogether.

A court will appoint guardians for your children

All parents should have guardianship appointments in their will as standard. Without this, the decision is left entirely to the courts, rather than family members, and there is no guarantee that the appointed guardians will align with your wishes. Naming guardians in your will provides clarity over your children’s future care.

A will ensures that your wishes are respected, both now and in the future. You don’t need to list every account or asset in detail, and continually update it, although we do recommend reviewing your will annually to ensure it continues to reflect your circumstances and intentions.

Fate is a fickle master, and none of us can predict how long we have left. Whatever your age, putting a will in place today offers peace of mind that your loved ones will be cared for, your estate managed as you intended, and unnecessary stress or expense avoided when your time is up.

Our consultants provide complimentary consultations to help you organise your estate planning with confidence. Contact us to arrange an appointment and take the first step towards protecting your future wishes.

This article was based on a recent webinar on estate planning from Jack Povah, Hoxton’s Estate Planning Adviser.