This month, the media has reported that One Direction star Liam Payne died ‘intestate’ (without a valid Will in place).

Liam Payne’s estate is reported to be worth £24 million, all of which will be inherited by his son, Bear, who is currently aged 8 years old.

Under the rules of intestacy, the estate will be held in trust until Bear reaches the age of 18. Liam Payne’s estate is set to be administered by his ex-partner and Bear’s mother, Cheryl Tweedy, alongside a solicitor.

This tragic case demonstrates some of the key issues of dying intestate. Firstly, Liam’s girlfriend lived with him, and it is reported that they had plans to marry, however she is not due to inherit anything from his estate under the rules of intestacy.

Secondly, with such a large estate it is possible that Liam would have liked to leave gifts to other family members, but again this will not happen under the rules of intestacy.

Finally, under the rules of intestacy Bear will inherit at the tender age of 18. If Liam had made a Will, he could have delayed Bear inheriting until he was much older than 18 for example at the age of 25.

Who will inherit under the rules of intestacy?

Assets that are held jointly with another person may pass by survivorship, outside of the rules of intestacy, to the surviving co-owner.

Many people assume that if you are married and die without a Will then your estate will pass entirely to your surviving spouse though this is not always the case. If you are married or in a civil partnership and you have children, your spouse/civil partner will receive all your personal chattels, the first £322,000 of your estate and half of anything above that amount. The remaining half of your estate above the value of £322,000 will be split equally between your children.

If you are married or in a civil partnership and have no children, your spouse/civil partner will inherit the whole of your estate.

If you are unmarried but have children, your children will inherit your estate equally. If any child has died before you, leaving children of their own (your grandchildren), then they will inherit the share that would have been due to their deceased parent.

If you are unmarried and have no children, your estate will be inherited by your closest living relative in accordance with the order specified in the rules of intestacy:

  • Parents
  • Siblings of full blood (or their lineal descendants)
  • Siblings of half-blood (or their lineal descendants)
  • Grandparents
  • Aunts and uncles of full blood (or their lineal descendants)
  • Aunts and uncles of half-blood (or their lineal descendants)
  • In default, the Crown.

Can the rules of intestacy be challenged?

It is possible to bring a claim against the deceased’s estate under the Inheritance (Provision for Family and Dependants) Act 1975 in certain cases. For example, children, stepchildren, ex-spouses, cohabiting partners of more than two years or other dependants may be able to bring a claim. However, these claims are costly and bring with them a lot of stress and uncertainty, as there is no guarantee of success.

Why should I consider making a Will?

The case of Liam Payne highlights the need to think about estate planning sooner rather than later. Whilst this case is brought to light because of Liam’s celebrity status, unfortunately these situations are not rare among the general public.

Making a Will is crucial for the following reasons:

  • A Will allows you to decide how your estate should be distributed after your death, and it avoids the risk of your assets being inherited by people that you would not have wished to inherit.
  • Obtaining legal advice when making a Will allows you to consider your inheritance tax position and the options for estate planning to reduce any inheritance tax liability where possible.
  • A Will allows you to choose who administers your estate by appointing Executors. This means that you can appoint the people that you trust to manage the distribution of your estate.
  • Under a Will, you can make specific gifts of items or leave legacies (a fixed sum of money) to beneficiaries. You can also make provision for a charity under your Will.
  • You can stipulate your funeral wishes within your Will.
  • If you have children then you can appoint Guardians under your Will, to care for your children if you were to die before they reach the age of 18.
  • A Will provides you with greater flexibility regarding your wishes. For example, you can set up trusts under your Will to provide your partner with the protection of being able to continue residing at your property after your death.
  • You can include age contingencies within your Will, to stipulate that beneficiaries are to inherit at a later age than 18 such as 21 for example.

No matter your age or your wealth, making a Will is important to ensure that your estate will pass in accordance with your wishes and that your loved ones are protected. Whilst it is not always a comfortable topic, planning for what happens after you pass away will assist your loved ones by avoiding delays, uncertainty and unnecessary stress.

Next Steps...

If you would like any advice regarding making a Will, please do not hesitate to contact me via email on s.wildsmith@timms-law.com or via telephone on 01283 214 231.

For more information on Wills & Probate, have a look at our webpage here.