Nobody likes to think about it, but having a will in place is one of the most important things you can do for your loved ones.
If you don’t leave a will when you die, the government decides how your estate is shared out — and that might not match what you would have wanted.
Here’s what happens under the rules of intestacy in England and Wales, and why getting your affairs in order could save your family a lot of heartache.
What About Jointly Owned Property?
How your home is passed on depends on how it’s jointly owned:
Joint Tenants
- You both own the whole property together
- When one person dies, the other automatically inherits their share
- But… their share still counts towards inheritance tax (IHT)
Tenants in Common
- You each own a defined share of the property
- That share forms part of your estate
- It’s passed on according to your will (or the intestacy rules if there’s no will)
If You’re Married or in a Civil Partnership (But Have No Children)
Your surviving spouse or civil partner will inherit the entire estate, even if you were separated at the time of death (as long as you weren’t divorced).
However:
- They must outlive you by at least 28 days
- If you were unmarried partners, they won’t inherit anything under the intestacy rules — even if you lived together for decades
If You’re Married and Have Children
Things get a bit more complex.
Here’s how your estate is split:
- Your spouse/civil partner gets:
Your personal possessions
The first £322,000 of your estate
Half of anything above that - The other half of the remainder goes to your children, split equally between them
Note: If your estate is worth less than £322,000, your spouse/civil partner inherits everything.
And if any children are under 18, their inheritance is held in trust until they come of age.
If You Have Children but No Spouse or Civil Partner
Then it’s simple — your estate will be divided equally between your children.
What If One of Your Children Has Passed Away?
If one of your children dies before you, and they have children of their own, those grandchildren will inherit their parent’s share, split equally.
No Spouse, No Children — Who Gets the Estate?
The rules follow this order of priority:
- Parents
- Siblings
- Grandparents
- Aunts and uncles
For example: If your mother is still alive, and you also have a brother and two aunts, your mother inherits everything.
And If There Are No Living Relatives?
Your entire estate passes to the Crown.
Yes — really.
It’s called bona vacantia, and it means the government takes it.
Why This Could Cost Your Family More in Tax
Sometimes the intestacy rules don’t just ignore your wishes — they also create an unnecessary inheritance tax bill.
Example:
- If your estate goes to children or other relatives instead of your spouse, it might exceed your tax-free allowance (known as your nil-rate band)
- That could mean your loved ones pay 40% IHT on part of the inheritance
- But if the same assets were left to your spouse, they’d be completely tax-free
Can the Family Change Who Gets What After Death?
Yes — but only if everyone agrees.
The beneficiaries can make a Deed of Variation within two years of death to change how the estate is shared. It’s like writing a will after the fact — and it can help reduce inheritance tax or better reflect what the deceased might have wanted.
Don’t Leave It to the Rules — Leave a Will Instead
Dying without a will can create confusion, conflict, and unnecessary tax bills.
If you want to make sure your estate goes to the right people (and avoid giving the taxman more than necessary), it’s time to get your affairs in order.
Need help with inheritance tax planning, or want to understand how the rules affect your estate? Jon and the team are here to help.
Get in touch today and we’ll make sure your wishes are protected — and your loved ones are looked after.
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Any questions?
If you’d like a meeting or a video call to discuss this, please get in touch with your favourite Liverpool accountant
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