Dying Without a Will

Have you ever considered what would happen toequally (or their children if they have
your property when you die? If you have made apredeceased). Any unmarried partner would need
will, there is every chance that the people youto make a claim against the estate under the
want to will get control of your estate, includingInheritance (Provision for Family and Dependents
your investment property.Act 1975) to seek financial provision from the
If you have not made a will, then it is quiteestate.
possible that the commercial or residentialIf a person dies unmarried with no children the
property portfolio that you have built up,whole of the estate will pass to the relatives of
maintained and arranged landlord insurance on,the deceased ranging from parents, through
over many years, could end up in the hands ofsiblings to more remote relations. If there are
the "wrong" people; even the Crown, in somenone, the money goes to the Crown.
circumstances.The way the intestacy rules operate highlights the
For example, unmarried couples (who are not in aneed for unmarried couples or families with step
civil partnership) have virtually no rightschildren (who are only covered by automatic
whatsoever. There is no such thing as a commonentitlements if adopted by the person who dies)
law marriage, for legal purposes.to make a will. Otherwise they are still not
If a person dies intestate with a surviving spouseprovided for under the intestacy provisions.
or civil partner and children the spouse/civilThe cost of making a will need not be high. The
partner is entitled to £250,000, the deceased'scost of not doing so could be suffering for those
personal possessions and a life interest in half ofyou care most about.
the residue of the estate. The children will beOf course, planning who gets your money at your
entitled to half of the residue immediately and thedeath also allows you to consider how to minimise
other half on the spouse's death.the potential impact of inheritance tax on your
If a person dies intestate leaving a spouse or civilestate. After all, even if the Crown is not going to
partner but no children the spouse/civil partner isget your entire estate, you could well become a
entitled to £450,000 plus the personal40% taxpayer when you die, if your estate is
possessions. The spouse is also entitled to half ofmore than £325,000 (up to double for a married
the residue immediately, with the other half goingcouple or civil partners). Advance planning can
to relatives of the deceased ranging fromreduce the impact.
parents, through siblings to more remote relations.It is important to seek independent professional
If there are none, the money goes to the Crown.advice before making any decision about your
However, if the person leaves a spouse only andproperty owners' landlords insurance quote as well
no siblings, nephews or nieces then the spouse willas your financial obligations. You should always ask
be entitled to the whole estate.your insurance advisers what experience they
It works differently for those not in a relationship.have of dealing with residential and/or commercial
If a person dies unmarried with children, therental property insurance.
children will be entitled to the whole of the estate