Probate without a Will – Letters of Administration

When somebody passes away without having made a Will, the rules of intestacy apply and so the law will dictate who has the authority to deal with the estate and benefit from the estate. The rules of intestacy are extremely strict and often leave people’s estates being dealt with by and distributed to individuals that the deceased had never intended.

Somebody who passes away without making a will is known as “intestate”. The individuals who are entitled to deal with the estate are called the administrators and the individuals who are entitled to benefit from the estate are called the beneficiaries. Other than spouses, civil partners, and adopted children, only close living blood relatives of the deceased can benefit from the intestate’s estate.

Spouse/civil partners

Where an individual was married or in a civil partnership when they passed away, the surviving spouse/civil partner will inherit the first £270,000 of the estate, half of the remainder of the estate, and all of the personal belongings of the deceased. For example, if somebody’s estate was worth £300,000 when they passed away and they were married at their death, the surviving spouse would receive the first £285,000 of that person’s estate (along with personal items). If the deceased had children, they would be entitled to the remainder of the estate. If the deceased was co-habiting with their partner, and they were not married or in a civil partnership, they would not be entitled to any of the estate under the rules of intestacy.

Children

If the person who has passed away was not married but had a child or children who survived them, then the child or children would inherit the entire estate (in equal shares if more than one child). Children do not receive their inheritance immediately if they are under the age of 18. They would only receive the inheritance upon turning 18, or if they got married or formed a civil partnership before that age. The administrators would deal with the inheritance on behalf of the child until they were entitled to the funds themselves. It should be noted that children born from unmarried relationships rank equally with children born in marital relationships.

Step-children are not entitled to a share of a deceased step-parents estate, unless they had been formally adopted by the deceased.

Grandchildren and great-grandchildren

Under the rules of intestacy, a grandchild or a great-grandchild would only be entitled to receive a share of a deceased’s estate if their parent or grandparent had died before the intestate person, or if their parent is alive when the deceased passes away but dies before reaching the age of 18 without marrying/forming a civil partnership.

Other close blood relatives

If the deceased passed away leaving no spouse, civil partner, children, grandchildren or great-grandchildren, then the next closest living relatives who will be entitled to inherit are the intestate’s siblings (including half-siblings), parents and grandparents, uncles and aunts (or cousins where the deceased’s uncle or aunt has passed away before them) and half-uncles and half-aunts (and again, half-cousins if the deceased’s half-uncle or half-aunt has passed away before them).

Where there are no surviving relatives

If somebody passes away without a Will leaving no surviving close blood relatives, that person’s estate will then pass to the Crown. This is known as “bona vacantia”, which is a term that refers to unclaimed goods.

Dealing with the Probate of an intestate person – “Letters of Administration”

Whoever is entitled to benefit from the estate (with reference to the above) would then be the individual(s) with the authority to deal with the estate – namely, the administrator or administrators. The administrators would need to apply for Letters of Administration (often referred to as Probate) so that they can be formally appointed by the court to deal with the affairs of the deceased.

The administrator would take responsibility for dealing with all aspects of the estate including:

• Notifying relevant organisations about the death;

• Ascertaining the assets and liabilities of the deceased;

• Making an application for the Letters of Administration;

•  Paying any inheritance tax that is owed;

• Collecting assets and paying liabilities;

• Producing estate accounts to set out the assets and liabilities in the estate as well as what will be due for distribution to the beneficiaries; and

• Making distributions to beneficiaries.

Dealing with an estate can be burdensome, and administrators have the option of appointing professionals, such as a solicitors firm, to assist them with the process if required.

Passing away without a Will can often lead to devastating consequences if the rules of intestacy do not accurately reflect what the wishes of the deceased would be. Not only this, but distribution of an estate in accordance with the rules of intestacy can have significantly adverse tax implications.

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